The announcement of Facebook’s crypto project Libra, was heralded with great fanfare except in countries such as India and China.
While India hasn’t acknowledged Libra and what it will entail, the anti-cryptocurrency regulations are still frustratingly vague. While no word or intimation has been shared by government officials, there have been plenty of rumours, that the government might opt for banning cryptocurrency trading.
However, we have still not given up hope. Last month, we had reported that ET’s report had claimed in its top two paragraphs is that Calibra may not be available in markets where “cryptocurrencies are banned or Facebook is restricted from operating in.” A second person also claimed that “Facebook has not filed any application with RBI (Reserve Bank of India) for its cryptocurrency in India.”
However, in the next paragraph ET’s report had stated that a Facebook representative has told it that he expects Calibra to work on WhatsApp and be available globally. Now we don’t know which of the Facebook representatives cited by ET were to be believed! We had also clarified that the report needed to be taken with a grain of salt.
In China, the writing on the wall could not be clearer. News portal Cryptopolitan had stated that the government in Beijing appears to be more stringently opposed to crypo technology, wary that American digital currencies could diminish its own financial independence.
China is also worried about the extent of Libra’s influence and worries that it might impact cross-border transactions.
Wang Xin, director of the People’s Bank of China (PBOC)’s research bureau, made the following comment recently, “If Libra is widely used for payments, cross-border payments in particular, would it be able to function like money and accordingly have a large influence on monetary policy, financial stability and the international monetary system?”
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