It appears that institutional attention towards Facebook’s Libra stablecoin is only growing. Reportedly, finance ministers of countries from the European Union will push for a response on Libra from G20 nations during their meeting in mid-October.
G20 to Respond to Facebook’s Libra
According to a report from Reuters, citing an EU document, the financial ministers of countries from the European Union will urge G20 members to articulate their stance on Facebook’s planed stablecoin, Libra.
According to the document, stablecoins such as Libra pose “multi-faceted” regulatory challenges and, hence, a response is needed at a global level.
Latest developments with regard to stablecoins and the multi-faceted regulatory, oversight and supervisory challenges these represent, call for seamless cooperation and concerted response at global level.
According to officials, the European Central Bank has also called for oversight of the project, and it intends to present a report during the upcoming G20 meeting.
The Knot Gets Tighter For Libra
It seems that Libra has been having tough times as of late. As CryptoPotato reported back in August, there were fears that main supporters might be leaving the project amid worries of growing regulatory scrutiny and skepticism.
Just yesterday, PayPal, one of the world’s largest online payment processors, as well as a key player in the Libra Association, announced that it was withdrawing from the initiative and would be focusing on its own core businesses.
PayPal also said that it would forego any potential further participation in the project, despite remaining supportive of its aspirations.
It’s unclear where the project will go from here. Facebook’s Libra has been in the crosshairs of regulators ever since it was announced, and so far it doesn’t seem to have received any support from legislators whatsoever. In fact, countries such as France and Germany have openly said that they will work towards blocking the project because they think it will undermine the authority of traditional financial institutions.