When Facebook first announced that they will be launching their own cryptocurrency called Libra in 2019, they were met with a great deal of anticipation from both the crypto community on the larger financial world. There had been speculation for months that Facebook was planning to enter the cryptocurrency industry and the confirmation of Libra, as well as the release of the white paper, sent shockwaves around the world. Since the announcement, Facebook has been forced to battle regulatory issues around the world in order to clear the path for Libra, with several members of the libra Association departing in light of these challenges.
Now, it has been reported that the government of the EU is still conflicted as to what to do with the Libra token and cryptocurrency in general.
According to a memo released by Executive Vice-President Dombrovskis on behalf of the European Commission on February 19, 2020, Facebook has open until now, fallen short of a lot of the questions that were demanded by the European Union and this has led to a situation where the information given “remains insufficient for determining the precise nature of Libra and, by extension, its relation with existing EU law.”
This is not to imply that the EU is necessarily hostile towards cryptocurrency as the memo notes that they are fully ready to harness the power of crypto by providing oversight and regulation but that Facebook is not giving them enough information to properly work with. There is a general sense of conflict among many parts of the world as they may either overregulate the crypto industry and end up stifling it like in India, or they may not do anything about it and eventually be overtaken by those who choose to embrace cryptocurrency. Many believe that China’s announcement of the Central Bank Digital Currency was in response to Libra in the first place. They have set off a ripple effect in which many more countries are looking towards their own Central Bank Digital Currency to avoid missing out on the benefits of crypto.