Can Libra Expect A Green Light As Facebook Greets Regulators With Open Arms?

September 21st, 2019

Social media giant Facebook has taken a bold step to managing the hurdles it has been facing from regulators. According to a recent report, Facebook CEO, Mark Zuckerberg, has made himself accessible to US lawmakers regulators. As this might help the popular social media company gain some respect after the Cambridge Analytica fiasco, it is likely that it will also affect Libra positively.

Facebook Shows Readiness To Obey Regulations

This week was the first time since last year that Zuckerberg made himself readily accessible to U.S. lawmakers and even the President of the united states, Donald Trump. According to the report, during Zuckerberg’s recent visit to Washington DC, Facebook was the one to request meetings.

According to Matt Grossmann, an associate professor at Michigan State University,

“They’re going to say it’s a successful trip as long as they improved relationships and they made senators more likely to call Facebook if they have a problem or they’re thinking of legislating in the area, “

However, this generous visitation was strategic and Zuckerberg was said to have attended the majority of the meetings not being under any oath, a situation which means any commitment made by either him or Facebook could be reversed.

Regulators Vs Libra

Considering Facebook’s proposed cryptocurrency project, Libra, Facebook making friends with regulators could be a good omen. Libra has faced a considerable level of regulatory scrutiny since its announcement. The more restless regulators around the world weighed the feasibility of incorporating Libra into their existing financial frameworks, the more evident it became that Libra was not a welcome idea.

France ranks high among the countries which have openly denounced Libra. According to a recent report by Coingape, French Finance minister, Bruno Le Maire made a clear warning about Libra. In his statement,

“All these concerns around Libra are serious. So I want to say this with a lot of clarity: In these conditions, we cannot authorize the development of Libra on European soil.”

Again, European Central Bank’s (ECB) legal official, Yves Mersch, also weighed in by giving a disapproving comment on Facebook’s controversial planned digital currency project calling it “beguiling but treacherous.” According to Yves,

I sincerely hope that the people of Europe will not be tempted to leave behind the safety and soundness of established payment solutions and channels in favor of the beguiling but treacherous promises of Facebook’s siren call, ”