EU competition commissioner Margret Westagher has launched an investigation into the digital currency project from Facebook. Her concerns are caused by the potentially anti-competitive nature of Libra.
The EU's antitrust chief is scrutinizing Facebook's planned cryptocurrency because of the risk that Libra will lead to the creation of a new, entirely separate economy https://t.co/39DLuiBxwN
– Bloomberg Crypto (@crypto) October 1, 2019
In her opinion, the launch of Libra could lead to the creation of a completely separate economy, which would put those who do not use digital currency at a disadvantage.
Westager called the investigation a “non-trivial step” for the agency, because for the first time they have to ask questions about what does not exist. The regulator will find out whether Facebook intends to become a platform for the sale of third-party goods and services.
Westager added that the EU central banks will study the risks to financial stability associated with Libra.
Meanwhile, the US Federal Reserve Board has expressed concerns that Facebook is creating a shadow banking system. Potential consequences for banks include the outflow of deposits and the decline in payments. The board on a rotational basis includes the heads of 12 American banks.
We will remind, earlier French Finance Minister Bruno Le Mayor said that the development of digital currency Facebook in Europe will be blocked, since it threatens the monetary sovereignty of states.
The German government has adopted a strategy to combat the release of Libra and other private stablecoins.
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