Libra: ECB President Raises ‘Substantial’ Concerns over Facebook’s Plans

By Nivesh Rustgi
Published July 26, 2019 Updated July 26, 2019
Best Buy In




ecb president on libra
Mario Draghi, ECB President (Source: The National)

Libra: ECB President Raises ‘Substantial’ Concerns over Facebook’s Plans

By Nivesh Rustgi
Published July 26, 2019 Updated July 26, 2019

Facebooks’ crypto announcement of Libra has had a massive impact on the cryptocurrency markets. Even before its launch, the interest in Libra has already surpassed top cryptos like Ethereum and XRP. Bereft with regulatory concerns, recently, Mark Zuckerberg reaffirmed that they would set it right, no matter how long it takes.

However, the regulatory soup also seems to be thickening for Facebook at the moment. Mario Draghi, the President of the European Central Bank, raised a long list of concerns with Facebook’s crypto plans.

Also Read: Is Facebook’s Past Haunting Libra’s Future? Know Here!

His concerns included cybersecurity, money laundering, terrorism financing, funding crime, privacy, tax evasion, and financial stability.

He told the media,

All these concerns are substantial, and they need to be addressed before the regulators can look at this with genuine positive interest.


The concerns seem to be echoing all around the world. Central Banks all around the world stand the risk of losing their power if Facebook creates a viable currency. Moreover, 2.3 billion user base that Facebook boasts of is a substantial threat to the Central Banks.

Currently, Facebook’s crypto plans have been pushed into a corner. The Libra Association is registered in Switzerland. However, to operate as a global currency, it will require to procure a lost of approvals from regulators around the world. Moreover, even the Swiss regulators recently persisted on Facebook to submit their design for privacy and data protection.

The Libra Reserve management and the fact that Calibra wallets will require KYC and ALM compliances are the biggest hurdles to the project.

Apart from concerns over Libra, he also hinted at a probable increase in inflation shortly. He also warned the EEA about the impending economic crisis. He said,

“the risks in the euro area growth outlook remain tilted to the downside”

How do you think the Central Banks will want to regulate the Libra Reserve? Please share your views with us. 


The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Nivesh Rustgi
1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)

Loading Next Story