Facebook’s libra cryptocurrency ‘poses Global Currency Threat’

For more latest news update on Cryptocurrency & Bitcoin trading bot cum Free crypto signals visit below given telegram channel

                        


                         Visit - https://t.me/btctradingclub




                           Visit - https://t.me/bestbitmexsignal



Facebook’s new cryptocurrency libra poses a threat to global financial policy, according to former Bank of Japan executive Hiromi Yamaoka.

Worldwide, Facebook has over 2.4bn active monthly users and, should a significant proportion of these start using Facebook’s new currency, Yamaoka warned that this could significantly devalue trade and monetary policies globally.


He told Reuters: “If Libra becomes more widely used than the sovereign currency of a particular country, the effect of monetary policy may be severely undermined.”


He claimed the target market for the currency will be countries where the market trust in their current domestic currency is low.

For countries with strong financial markets, however, the introduction of a new, popular currency puts pressure on policymakers to make decisions that will not inadvertently devalue their own currencies.



It won’t be a big problem for countries that enjoy strong market trust in their currencies. Still, the emergence of libra would pressure policymakers to discipline themselves.”

The universal nature of Facebook’s libra cryptocurrency also poses a threat as it means it avoids regulations that otherwise differ between countries’ domestic currencies.

Yamaoka said: “Any inconsistency in rules among countries creates a loophole that renders the rules ineffective.”