Central Banks May Follow Facebook, Create Their Own Crypto

Facebook shocked the world when it announced Libra, their own cryptocurrency. Bankers and regulators across the globe instantly felt their iron grip over money -- slipping. And they were afraid. Up until this point Bitcoin seemed to be on the fringe of their radar. Who used it anyway? Drug dealers and sex traffickers? But then Facebook stepped up to the diving board, and took the plunge into cryptocurrencies. For regulators and bankers -- this changed everything.

Date: 
July 02, 2019
Read time: 
2 minutes

Central Banks May Follow Facebook, Create Their Own Crypto

Date: 
July 02, 2019
Read time: 
2 minutes

Facebook shocked the world when it announced Libra, their own cryptocurrency. Bankers and regulators across the globe instantly felt their iron grip over money -- slipping. And they were afraid. Up until this point Bitcoin seemed to be on the fringe of their radar. Who used it anyway? Drug dealers and sex traffickers? But then Facebook stepped up to the diving board, and took the plunge into cryptocurrencies. For regulators and bankers -- this changed everything.

Facebook shocked the world when it announced Libra, their own cryptocurrency. Bankers and regulators across the globe instantly felt their iron grip over money -- slipping. And they were afraid. Up until this point Bitcoin seemed to be on the fringe of their radar. Who used it anyway? Drug dealers and sex traffickers? But then Facebook stepped up to the diving board, and took the plunge into cryptocurrencies. For regulators and bankers -- this changed everything.

Regulators need to ensure a level playing field between big techs and banks, taking into account big techs’ wide customer base, access to information and broad-ranging business models. (Chief of The Bank for International Settlements (BIS) -- Agustin Carstens)

After all, Facebook holds hundreds of millions of users around the world. Not drug dealers and pimps, but suburban soccer moms and old people. People who vote. What would happen if they were given access to cryptocurrencies? What would happen if they became comfortable with using money that, gasp, wasn’t controlled by the government? 

This worried France’s finance minister, Bruno Le Maire, so much, that he called for the G7 central bank governors to prepare a report on Facebook’s project and said “It is out of the question’’ that Libra be allowed to “become a sovereign currency. It can’t and it must not happen.

In the U.S., Congresswoman Maxine Waters demanded Facebook halt development of the Libra Network until hearings can be held.

Get More Knowledge: The Best Crypto Services You Should Use

Crypto is Inevitable

But cryptocurrencies are inevitable. They cannot be stopped. Bitcoin has proven this, time and time again, year after year. A decade since Bitcoin’s creation and it is stronger than ever -- in price, code, everything. 

It seems the Chief of The Bank for International Settlements (BIS) -- Agustin Carstens -- understands this, and he is pressing for central banks to...wait for it… develop and deploy their own cryptocurrencies.

Wow.

Bitcoin and crypto have come full circle. From denial to anger to acceptance. And now, BIS, an international financial institution owned by central banks which “serves as a bank for central banks" -- is pushing to create their own digital currency. 

Why? Because, as the Chief himself put it, “Regulators need to ensure a level playing field between big techs and banks, taking into account big techs’ wide customer base, access to information and broad-ranging business models.

Isn’t life just ironic?

Posted by R.R. Hauxley

R.R. Hauxley traveled around the world ... 1 year on 1 Bitcoin. 20 countries, 12 months, 1 Bitcoin. He wrote a book about it: Stolen Wallets and Where to Buy Them. Along the way he met and interviewed the sharpest, brightest minds in crypto today: Vitalik Buterin, Charlie Lee, and more. Today Rafael educates the crypto curious and delves further into the incredible world of blockchain.

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