Reports around China claim that the country is rolling out its digital currency in four cities starting next week.

Owing to the COVID-19 pandemic, the health risk embedded into using physical currencies came to light. This development is interesting because China was the initial epicentre of the outbreak, and now seems to be recovering.

Over the last few months, the Chinese central bank has intensified efforts to develop a digital currency, the Guardian reported. The “e-RMB” shall mark the first official digital currency operated by a major economy.

Also read:&nbsp;<a href="wionews.com/world/facebooks-zuckerberg-grilled-in-us-congress-on-digital-currency-privacy-elections-257824" hreflang="en">Facebook's Zuckerberg grilled in US Congress on digital currency, privacy, elections</a>

The cities where trials are underway include Shenzhen, Suzhou, Chengdu, and Beijing's&nbsp;Xiong’an.

According to China Daily, a state run media outlet, many government employees across these cities will now receive payments via digital currencies only, many beginning this month.

This means that the e-currency has now been imbibed into the country’s government structure.

Another Chinese news outlet - Sina news claimed that in Suzhou, the currency would be employed solely on public transport. In Xiong’an, the focus will be food and retail.

Also read:&nbsp;<a href="wionews.com/opinions-blogs/digital-technology-can-help-minimise-the-coronavirus-impact-on-economy-heres-how-295322" hreflang="en">Digital technology can help minimise the coronavirus impact on economy: here's how</a>

This is part of a blanket coverage plan whereby the need for physical currency will be minimised, if not eliminated. Even though most countries have thought about implementing it, China is the only country to go ahead with it.

A government sanctioned app will be used to store and use the digital currency, many reports claim.

China's central bank set up a research team in 2014 to find out ways of launching its own digital currency which would tremendously cut the costs of circulating traditional paper money and boost policymakers' control of money supply.

Also read:&nbsp;<a href="wionews.com/world/china-passes-cryptography-law-to-gears-up-for-digital-currency-258334" hreflang="en">China passes cryptography law to gear up for digital currency</a>

China's proposed new digital currency would be similar to Facebook Inc's&nbsp;Libra coin, Reuters reported.

It would be&nbsp;used across major payment platforms such as WeChat and Alipay, a senior central bank official told Reuters in October 2019.

China had enforced a cryptography law in January 2020 aimed at "facilitating the development of the cryptography business and ensuring the security of cyberspace and information", the official Xinhua news agency said.

The fear surrounding physical contact may trigger widespread and instant adoption of the digital currency.

Reports around China claim that the country is rolling out its digital currency in four cities starting next week. Owing to the COVID-19 pandemic, the health risk embedded into using physical currencies came to light.

Reports around China claim that the country is rolling out its digital currency in four cities starting next week. Owing to the COVID-19 pandemic, the health risk embedded into using physical currencies came to light. This development is interesting because China was the initial epicentre of the outbreak, and now seems to be recovering. Over the last few months, the Chinese central bank has intensified efforts to develop a digital currency, the Guardian reported. The “e-RMB” shall mark the first official digital currency operated by a major economy. Also read: Facebook's Zuckerberg grilled in US Congress on digital currency, privacy, elections The cities where trials are underway include Shenzhen, Suzhou, Chengdu, and Beijing's Xiong’an. According to China Daily, a state run media outlet, many government employees across these cities will now receive payments via digital currencies only, many beginning this month. This means that the e-currency has now been imbibed into the country’s government structure. Another Chinese news outlet - Sina news claimed that in Suzhou, the currency would be employed solely on public transport. In Xiong’an, the focus will be food and retail. Also read: Digital technology can help minimise the coronavirus impact on economy: here's how This is part of a blanket coverage plan whereby the need for physical currency will be minimised, if not eliminated. Even though most countries have thought about implementing it, China is the only country to go ahead with it. A government sanctioned app will be used to store and use the digital currency, many reports claim. China's central bank set up a research team in 2014 to find out ways of launching its own digital currency which would tremendously cut the costs of circulating traditional paper money and boost policymakers' control of money supply. Also read: China passes cryptography law to gear up for digital currency China's proposed new digital currency would be similar to Facebook Inc's Libra coin, Reuters reported. It would be used across major payment platforms such as WeChat and Alipay, a senior central bank official told Reuters in October 2019. China had enforced a cryptography law in January 2020 aimed at "facilitating the development of the cryptography business and ensuring the security of cyberspace and information", the official Xinhua news agency said. The fear surrounding physical contact may trigger widespread and instant adoption of the digital currency.

China's grand e-currency experiment set to begin this month

In a hit to Facebook’s digital currency plans, the president of Switzerland Ueli Maurer has said Facebook’s Libra project has failed in its current form and needs reworking to be approved, as the Cryptocurrency is seeking regulatory consent.

Plans for the Facebook-led digital currency, which is to be issued and governed by the Geneva-based Libra association, have raised concerns among regulators and politicians ranging from privacy to its potential to influence monetary policy and change the global financial landscape.&nbsp;

Officials running the project, including co-creator David Marcus of Facebook, have said regulatory hurdles could see the launch delayed beyond the planned June date.

The cryptocurrency is to be backed by a reserve of assets such as bank deposits and government debt held by a network of custodians.&nbsp;

The structure is meant to foster trust and avoid the price swings that plague other cryptocurrencies.&nbsp;

In a hit to Facebook’s digital currency plans, the president of Switzerland Ueli Maurer has said Facebook’s Libra project has failed in its current form and needs reworking to be approved, as the Cryptocurrency is seeking regulatory consent.

In a hit to Facebook’s digital currency plans, the president of Switzerland Ueli Maurer has said Facebook’s Libra project has failed in its current form and needs reworking to be approved, as the Cryptocurrency is seeking regulatory consent. Plans for the Facebook-led digital currency, which is to be issued and governed by the Geneva-based Libra association, have raised concerns among regulators and politicians ranging from privacy to its potential to influence monetary policy and change the global financial landscape. Officials running the project, including co-creator David Marcus of Facebook, have said regulatory hurdles could see the launch delayed beyond the planned June date. The cryptocurrency is to be backed by a reserve of assets such as bank deposits and government debt held by a network of custodians. The structure is meant to foster trust and avoid the price swings that plague other cryptocurrencies.

Libra has failed in current form: Swiss president Ueli Maurer

Facebook should not launch its global digital currency Libra until proper regulations are in place to handle the potential risks, the Group of Seven said Thursday.

And France's Economy Minister Bruno Le Maire warned that a currency like Libra could undermine sovereign nations' control over their exchange rates.

"It's a matter of democracy, not just a simple economic question," Le Maire told reporters, saying Facebook's currency could have an "immediate global reach" through the social network's huge membership.

Le Maire presented the Group of Seven nation's statement on Libra, saying "no global stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed," including the potential for money laundering and terror financing.

But, he told reporters, "The key question is the question of sovereignty."&nbsp;

"Do we want a private company to have... the same power, and the same sovereignty, as democratic states" over currencies.

Libra, which would be backed by reserve assets unlike cryptocurrencies like Bitcoin, has faced a steady drumbeat of stern warnings from central bankers and financial regulators.

European Central Bank board member Benoit Coeure presented a report on digital currencies to the G7 finance ministers, who are gathering on the margins of the annual meetings of the International Monetary Fund and World Bank.

The report said a framework for oversight of Libra "is an absolute prerequisite," and urged regulators to coordinate their work to prevent issuers from seeking out the most favorable country from which to operate.

Libra members drop out

If it enters circulation, Libra would offer an alternative to traditional bank financial transfers, a disruptive change that has aroused resistance and scepticism.

Facebook's digital currency chief David Marcus told reporters in Washington that the issues raised by Le Maire are "legitimate concerns."

"We're determined to answer these concerns with real solutions that will meet or exceed the standards of the current system," he told a small group of reporters at an event in Washington.

Mark Zuckerberg, Facebook's co-founder and chief executive, was in Washington as well Thursday and is due to testify before the US Congress next week on the social media network's impact on financial services.

The Libra Association, which will oversee Facebook's proposed currency and officially launched Monday in Geneva, also said in a statement that Libra "is being designed to respect national sovereignty over monetary policy in the digital space, not undermine it."

But central bankers remain concerned about the prospects.

Lael Brainard, an influential member of the US Federal Reserve Board, said Facebook's proposed currency presented a host of risks and regulatory challenges for preventing money-laundering and assuring financial stability and could be a challenge to the traditional role played by banks.

"There are likely to be financial stability risks for a stable coin network with global reach," she said in a speech Wednesday. "If not managed effectively, liquidity, credit, market, or operational risks -- alone or in combination -- could trigger a loss of confidence and a classic run."

China, which is not a G7 member and decided two years ago to block cryptocurrency transactions, has recently sped up plans to introduce its own digital money.

Libra also has faced challenges from within after major financial and commercial players in recent weeks have backed out of the project, including Visa, Mastercard, eBay, Stripe, PayPal and the online travel firm Bookings Holdings.

The 21 founding members include the online payments company PayU, the telecoms firms Vodafone and Iliad, as well as tech outfits Uber, Spotify and Farfetch, blockchain operations such as Anchorage, Xapo and Coinbase and the venture capital firms Andreessen Horowitz, Ribbit Capital and non-profits Kiva and Mercy Corps.

Facebook should not launch its global digital currency Libra until proper regulations are in place to handle the potential risks, the Group of Seven said Thursday.

Facebook should not launch its global digital currency Libra until proper regulations are in place to handle the potential risks, the Group of Seven said Thursday. And France's Economy Minister Bruno Le Maire warned that a currency like Libra could undermine sovereign nations' control over their exchange rates. "It's a matter of democracy, not just a simple economic question," Le Maire told reporters, saying Facebook's currency could have an "immediate global reach" through the social network's huge membership. Le Maire presented the Group of Seven nation's statement on Libra, saying "no global stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed," including the potential for money laundering and terror financing. But, he told reporters, "The key question is the question of sovereignty." "Do we want a private company to have... the same power, and the same sovereignty, as democratic states" over currencies. Libra, which would be backed by reserve assets unlike cryptocurrencies like Bitcoin, has faced a steady drumbeat of stern warnings from central bankers and financial regulators. European Central Bank board member Benoit Coeure presented a report on digital currencies to the G7 finance ministers, who are gathering on the margins of the annual meetings of the International Monetary Fund and World Bank. The report said a framework for oversight of Libra "is an absolute prerequisite," and urged regulators to coordinate their work to prevent issuers from seeking out the most favorable country from which to operate. Libra members drop out If it enters circulation, Libra would offer an alternative to traditional bank financial transfers, a disruptive change that has aroused resistance and scepticism. Facebook's digital currency chief David Marcus told reporters in Washington that the issues raised by Le Maire are "legitimate concerns." "We're determined to answer these concerns with real solutions that will meet or exceed the standards of the current system," he told a small group of reporters at an event in Washington. Mark Zuckerberg, Facebook's co-founder and chief executive, was in Washington as well Thursday and is due to testify before the US Congress next week on the social media network's impact on financial services. The Libra Association, which will oversee Facebook's proposed currency and officially launched Monday in Geneva, also said in a statement that Libra "is being designed to respect national sovereignty over monetary policy in the digital space, not undermine it." But central bankers remain concerned about the prospects. Lael Brainard, an influential member of the US Federal Reserve Board, said Facebook's proposed currency presented a host of risks and regulatory challenges for preventing money-laundering and assuring financial stability and could be a challenge to the traditional role played by banks. "There are likely to be financial stability risks for a stable coin network with global reach," she said in a speech Wednesday. "If not managed effectively, liquidity, credit, market, or operational risks -- alone or in combination -- could trigger a loss of confidence and a classic run." China, which is not a G7 member and decided two years ago to block cryptocurrency transactions, has recently sped up plans to introduce its own digital money. Libra also has faced challenges from within after major financial and commercial players in recent weeks have backed out of the project, including Visa, Mastercard, eBay, Stripe, PayPal and the online travel firm Bookings Holdings. The 21 founding members include the online payments company PayU, the telecoms firms Vodafone and Iliad, as well as tech outfits Uber, Spotify and Farfetch, blockchain operations such as Anchorage, Xapo and Coinbase and the venture capital firms Andreessen Horowitz, Ribbit Capital and non-profits Kiva and Mercy Corps.

G7 says Libra should not launch until risks 'adequately addressed'

Pioneering digital payments firm PayPal on Friday said it is abandoning an alliance intended to oversee the Facebook-backed Libra cryptocurrency, which has come under attack by regulators.

"PayPal has made the decision to forgo further participation in the Libra Association at this time," the California-based company told AFP.

"We remain supportive of Libra's aspirations and look forward to continued dialogue on ways to work together in the future."

The international outcry is mounting over Libra -- with central banks and governments railing against Facebook's upstart cryptocurrency and questions over how it would be regulated.

"It requires a certain boldness and fortitude to take on an endeavour as ambitious as Libra -- a generational opportunity to get things right and improve financial inclusion," association head of policy Dante Disparte said in response to an AFP inquiry.

"The journey will be long and challenging. We're better off knowing about this lack of commitment now, rather than later."

Facebook unveiled plans in June for Libra -- which will roll out in 2020 -- to be backed by a basket of currency assets to avoid the wild swings of Bitcoin and other virtual units.

The non-profit Libra Association, based in Geneva, will oversee the blockchain-based coin.

Facebook envisions Libra as a new global cryptocurrency, pledging to deliver stable virtual money that lives on smartphones and could bring over a billion "unbanked" people into the financial system.

"The type of change that will reconfigure the financial system to be tilted towards people, not the institutions serving them, will be hard," Disparte said.

"Commitment to that mission is more important to us than anything else."

Mastercard, Visa and other financial partners enlisted to oversee Libra are reportedly having second thoughts as regulators unleash ire on the project and dig for information from members of the association.

Other Libra backers include ride-hailing apps Lyft and Uber.

The head of the association said last week that the project's leaders aimed to "reassure" regulators worried about the virtual money.&nbsp;

In leaked comments from a meeting of Facebook employees in July, Facebook chief executive Mark Zuckerberg said he remained optimistic about Libra despite harsh comments from public officials in several countries.

"The public things, I think, tend to be a little more dramatic," he said.

"But a bigger part of it is private engagement with regulators around the world, and those, I think, often, are more substantive and less dramatic... That's where a lot of the discussions and details get hashed out on things."

Cook's view

In an interview published Friday in French newspaper Les Echos, Apple chief executive Tim Cook said he was uncomfortable with the idea of a company taking over roles typically reserved for governments.

Without specifically naming Facebook, Cook said issuing currency, like national defence, is best left to states.

Facebook and some two dozen partners released a prototype of Libra as open-source code for developers interested in weaving it into apps, services or businesses.

Martin Chorzempa, a research fellow at the Peterson Institute for International Economics, questioned whether Libra would be able to fulfil its vision.

In particular, Libra will need to comply with regulations that require collecting personal information about customers in order to expose crimes such as money laundering or fraud.

"It is not clear to me that Libra is anywhere near being able to perform those know-your-customer requirements that would allow them to legally serve these communities," Chorzempa said.

"Libra would have to work with governments to make sure they are compliant or get those rules changed, and that is a difficult process."

Pioneering digital payments firm PayPal on Friday said it is abandoning an alliance intended to oversee the Facebook-backed Libra cryptocurrency, which has come under attack by regulators.

Pioneering digital payments firm PayPal on Friday said it is abandoning an alliance intended to oversee the Facebook-backed Libra cryptocurrency, which has come under attack by regulators. "PayPal has made the decision to forgo further participation in the Libra Association at this time," the California-based company told AFP. "We remain supportive of Libra's aspirations and look forward to continued dialogue on ways to work together in the future." The international outcry is mounting over Libra -- with central banks and governments railing against Facebook's upstart cryptocurrency and questions over how it would be regulated. "It requires a certain boldness and fortitude to take on an endeavour as ambitious as Libra -- a generational opportunity to get things right and improve financial inclusion," association head of policy Dante Disparte said in response to an AFP inquiry. "The journey will be long and challenging. We're better off knowing about this lack of commitment now, rather than later." Facebook unveiled plans in June for Libra -- which will roll out in 2020 -- to be backed by a basket of currency assets to avoid the wild swings of Bitcoin and other virtual units. The non-profit Libra Association, based in Geneva, will oversee the blockchain-based coin. Facebook envisions Libra as a new global cryptocurrency, pledging to deliver stable virtual money that lives on smartphones and could bring over a billion "unbanked" people into the financial system. "The type of change that will reconfigure the financial system to be tilted towards people, not the institutions serving them, will be hard," Disparte said. "Commitment to that mission is more important to us than anything else." Mastercard, Visa and other financial partners enlisted to oversee Libra are reportedly having second thoughts as regulators unleash ire on the project and dig for information from members of the association. Other Libra backers include ride-hailing apps Lyft and Uber. The head of the association said last week that the project's leaders aimed to "reassure" regulators worried about the virtual money. In leaked comments from a meeting of Facebook employees in July, Facebook chief executive Mark Zuckerberg said he remained optimistic about Libra despite harsh comments from public officials in several countries. "The public things, I think, tend to be a little more dramatic," he said. "But a bigger part of it is private engagement with regulators around the world, and those, I think, often, are more substantive and less dramatic... That's where a lot of the discussions and details get hashed out on things." Cook's view In an interview published Friday in French newspaper Les Echos, Apple chief executive Tim Cook said he was uncomfortable with the idea of a company taking over roles typically reserved for governments. Without specifically naming Facebook, Cook said issuing currency, like national defence, is best left to states. Facebook and some two dozen partners released a prototype of Libra as open-source code for developers interested in weaving it into apps, services or businesses. Martin Chorzempa, a research fellow at the Peterson Institute for International Economics, questioned whether Libra would be able to fulfil its vision. In particular, Libra will need to comply with regulations that require collecting personal information about customers in order to expose crimes such as money laundering or fraud. "It is not clear to me that Libra is anywhere near being able to perform those know-your-customer requirements that would allow them to legally serve these communities," Chorzempa said. "Libra would have to work with governments to make sure they are compliant or get those rules changed, and that is a difficult process."

PayPal abandons Facebook-backed Libra cryptocurrency group

Global regulators will question Facebook on Monday about its <a href="https://www.wionews.com/world/facebooks-libra-has-to-build-anti-money-laundering-anti-terror-financing-design-us-treasury-248861">Libra cryptocurrency</a>, amid concerns from European Union governments over the threat the <a href="https://www.wionews.com/world/facebook-needs-very-high-standard-for-libra-coin-us-treasury-steven-mnuchin-236268">digital currency</a>&nbsp;poses to financial stability, the Financial Times reported on Sunday.

Officials from 26 central banks, including the <a href="https://www.wionews.com/world/us-lawmakers-question-facebook-over-plans-on-libra-cryptocurrency-236514">US</a>&nbsp;Federal Reserve and the Bank of England, will meet with representatives of Libra in Basel on Monday, the FT said, citing officials.

Libra's founders have also been invited to answer key questions about the currency's scope and design, FT said.

Facebook did not immediately respond to Reuters' request for comment outside regular business hours.

Countries including France and Germany have publicly criticised the social media giant's Libra project, saying it posed risks to EU states' sovereignty.

Global regulators will question Facebook on Monday about its Libra cryptocurrency, amid concerns from European Union governments over the threat the digital currency poses to financial stability, the Financial Times reported on Sunday.

Global regulators will question Facebook on Monday about its Libra cryptocurrency, amid concerns from European Union governments over the threat the digital currency poses to financial stability, the Financial Times reported on Sunday. Officials from 26 central banks, including the US Federal Reserve and the Bank of England, will meet with representatives of Libra in Basel on Monday, the FT said, citing officials. Libra's founders have also been invited to answer key questions about the currency's scope and design, FT said. Facebook did not immediately respond to Reuters' request for comment outside regular business hours. Countries including France and Germany have publicly criticised the social media giant's Libra project, saying it posed risks to EU states' sovereignty.

Global regulators to question Facebook's Libra amid EU concerns: Report

The Facebook-led Libra cryptocurrency project must meet the highest standards for combating <a href="https://www.wionews.com/world/us-lawmakers-question-facebook-over-plans-on-libra-cryptocurrency-236514">money laundering and terrorism</a> financing if it is to get off the ground, a senior US&nbsp;Treasury official said on Tuesday.

Any cryptocurrency project, including Geneva-based Libra, operating in all or substantial parts of the United States will clearly have to satisfy US&nbsp;regulatory standards, US&nbsp;Under Secretary of Terrorism and Financial Intelligence Sigal Mandelker told reporters in the Swiss capital.

"Whether it's bitcoin, <a href="https://www.wionews.com/world/facebook-needs-very-high-standard-for-libra-coin-us-treasury-steven-mnuchin-236268">Ethereum, Libra, our message</a> is the same to all of these companies: anti-money laundering and combating the financing of terrorism has to be built into your design from the get-go," Mandelker said.

She was speaking after meeting Swiss government officials and representatives from the Bank for International Settlements and other international financial bodies to discuss cryptocurrencies including the planned Libra project, which is to be launched by a Swiss-based association.

While the digital currency industry has paid tremendous attention to developing the underlying technology, much of the industry has paid far too little attention to ensuring that the networks they are building do not enable terrorists and other bad actors to hide and move money, Mandelker said.

The Treasury official said she would meet Switzerland's financial market supervisor FINMA on Tuesday&nbsp;where she would be discussing not only the application of proper anti-money laundering safeguards but also taking enforcement actions against companies flouting those rules would be a priority.

FINMA in August had granted Switzerland's first banking and securities licenses to two blockchain service providers and has built up a digital currency hub nicknamed the "Crypto Valley".

"Switzerland, like a number of other countries, has promoted itself as a hub for fintech and for innovation, and so, of course, any country that promotes itself in that way -&nbsp;&nbsp;in my view, it's incumbent upon that country to take these particular concerns at the highest level in(to) the utmost regard," she added.

The Libra project was still in very early stages of thinking through steps to prevent such crimes, she said, adding Swiss officials had similar views.

Digital currencies such as Libra raise serious concerns and must be regulated as tightly as possible to ensure they do not upset the world's financial system, Group of Seven finance ministers and central bankers had said in July.

The Facebook-led Libra cryptocurrency project must meet the highest standards for combating money laundering and terrorism financing if it is to get off the ground, a senior US Treasury official said on Tuesday.

The Facebook-led Libra cryptocurrency project must meet the highest standards for combating money laundering and terrorism financing if it is to get off the ground, a senior US Treasury official said on Tuesday. Any cryptocurrency project, including Geneva-based Libra, operating in all or substantial parts of the United States will clearly have to satisfy US regulatory standards, US Under Secretary of Terrorism and Financial Intelligence Sigal Mandelker told reporters in the Swiss capital. "Whether it's bitcoin, Ethereum, Libra, our message is the same to all of these companies: anti-money laundering and combating the financing of terrorism has to be built into your design from the get-go," Mandelker said. She was speaking after meeting Swiss government officials and representatives from the Bank for International Settlements and other international financial bodies to discuss cryptocurrencies including the planned Libra project, which is to be launched by a Swiss-based association. While the digital currency industry has paid tremendous attention to developing the underlying technology, much of the industry has paid far too little attention to ensuring that the networks they are building do not enable terrorists and other bad actors to hide and move money, Mandelker said. The Treasury official said she would meet Switzerland's financial market supervisor FINMA on Tuesday where she would be discussing not only the application of proper anti-money laundering safeguards but also taking enforcement actions against companies flouting those rules would be a priority. FINMA in August had granted Switzerland's first banking and securities licenses to two blockchain service providers and has built up a digital currency hub nicknamed the "Crypto Valley". "Switzerland, like a number of other countries, has promoted itself as a hub for fintech and for innovation, and so, of course, any country that promotes itself in that way - in my view, it's incumbent upon that country to take these particular concerns at the highest level in(to) the utmost regard," she added. The Libra project was still in very early stages of thinking through steps to prevent such crimes, she said, adding Swiss officials had similar views. Digital currencies such as Libra raise serious concerns and must be regulated as tightly as possible to ensure they do not upset the world's financial system, Group of Seven finance ministers and central bankers had said in July.

Facebook's Libra has to build anti-money laundering, anti-terror financing design: US Treasury

Fraudsters are out to cash in on interest in <a href="https://www.wionews.com/world/us-lamakers-propose-barring-big-tech-companies-from-offering-financial-services-digital-currencies-236125">Facebook-backed digital currency Libra</a>, hawking bogus buying opportunities at online venues including the social network itself.

Libra is to launch next year, overseen by an association based in Europe, but as with other hot topics it has been seized on by nefarious characters intent on tricking people with false accounts, pages, and information.

Fake Libra opportunities or offerings have popped up on Facebook's main social network and its image-centric online community Instagram, &nbsp;according to a report Monday in the Washington Post.

Several Libra-themed deceptive accounts were removed from the Facebook platform after the California-based company was alerted by the Post, according to the publication.

Some of the fake accounts used the official Facebook logo and photos of <a href="https://www.wionews.com/world/if-facebooks-libra-wants-to-become-a-bank-it-must-must-seek-new-banking-charter-trump-235162">chief executive Mark Zuckerberg</a>.&nbsp;

"<a href="https://www.wionews.com/world/facebook-needs-very-high-standard-for-libra-coin-us-treasury-steven-mnuchin-236268">Facebook</a> removes ads and Pages that violate our policies when we become aware of them, and we are constantly working to improve detection of scams on our platforms," the internet titan said in response to an AFP inquiry.

The Libra Association was reported to be working with Facebook to get deceptive pages about the currency deleted.

Criminals routinely seize on hot topics to try to dupe people online, from natural disasters and major tragedies to celebrity news.

A buylibracoins.com website accessible Monday offered a fake chance to buy the digital currency, encouraging potential victims to share contact details of friends in a referral program.

Fraudsters were said to be set also hunting for victims at other online venues such as Twitter and YouTube.

Financial upheaval

The rise of fake Libra offerings comes as Facebook tries to dispel worries and build trust in what it hopes will be a global currency that gives life-changing financial tools to people around the world.

G7 finance ministers and central bankers last week dealt a blow to Facebook's planned new cryptocurrency Libra, issuing a barrage of warnings about its dangers for the global economy at a two-day meeting outside Paris.

Facebook in June unveiled its plans for Libra in an announcement greeted with concern by governments and critics of the social network behemoth, whose reputation has already been tarnished by its role in spreading fake information and extremist videos.

Ministers from the Group of Seven (G7) major global economies "agreed that projects such as Libra may affect monetary sovereignty and the functioning of the international monetary system," France, the current G7 chair, said in a statement.

It said projects like Libra with a "global and potentially systemic footprint... raise serious regulatory and systemic concerns, as well as wider policy issues, which both need to be addressed before such projects can be implemented."

US Treasury Secretary Steven Mnuchin said his concerns about Libra and other cryptocurrencies which he had made clear in White House news conference this month were shared by G7 counterparts.

Libra is widely regarded as a challenger to dominant global player bitcoin. Expected to launch in the first half of 2020, Libra is designed to be backed by a basket of currency assets to avoid the wild swings of bitcoin and other cryptocurrencies.

Fraudsters are out to cash in on interest in Facebook-backed digital currency Libra, hawking bogus buying opportunities at online venues including the social network itself.

Fraudsters are out to cash in on interest in Facebook-backed digital currency Libra, hawking bogus buying opportunities at online venues including the social network itself. Libra is to launch next year, overseen by an association based in Europe, but as with other hot topics it has been seized on by nefarious characters intent on tricking people with false accounts, pages, and information. Fake Libra opportunities or offerings have popped up on Facebook's main social network and its image-centric online community Instagram, according to a report Monday in the Washington Post. Several Libra-themed deceptive accounts were removed from the Facebook platform after the California-based company was alerted by the Post, according to the publication. Some of the fake accounts used the official Facebook logo and photos of chief executive Mark Zuckerberg. "Facebook removes ads and Pages that violate our policies when we become aware of them, and we are constantly working to improve detection of scams on our platforms," the internet titan said in response to an AFP inquiry. The Libra Association was reported to be working with Facebook to get deceptive pages about the currency deleted. Criminals routinely seize on hot topics to try to dupe people online, from natural disasters and major tragedies to celebrity news. A buylibracoins.com website accessible Monday offered a fake chance to buy the digital currency, encouraging potential victims to share contact details of friends in a referral program. Fraudsters were said to be set also hunting for victims at other online venues such as Twitter and YouTube. Financial upheaval The rise of fake Libra offerings comes as Facebook tries to dispel worries and build trust in what it hopes will be a global currency that gives life-changing financial tools to people around the world. G7 finance ministers and central bankers last week dealt a blow to Facebook's planned new cryptocurrency Libra, issuing a barrage of warnings about its dangers for the global economy at a two-day meeting outside Paris. Facebook in June unveiled its plans for Libra in an announcement greeted with concern by governments and critics of the social network behemoth, whose reputation has already been tarnished by its role in spreading fake information and extremist videos. Ministers from the Group of Seven (G7) major global economies "agreed that projects such as Libra may affect monetary sovereignty and the functioning of the international monetary system," France, the current G7 chair, said in a statement. It said projects like Libra with a "global and potentially systemic footprint... raise serious regulatory and systemic concerns, as well as wider policy issues, which both need to be addressed before such projects can be implemented." US Treasury Secretary Steven Mnuchin said his concerns about Libra and other cryptocurrencies which he had made clear in White House news conference this month were shared by G7 counterparts. Libra is widely regarded as a challenger to dominant global player bitcoin. Expected to launch in the first half of 2020, Libra is designed to be backed by a basket of currency assets to avoid the wild swings of bitcoin and other cryptocurrencies.

Fraudsters exploit interest in Libra digital currency

The G7 group of the world's most developed economies are worried about Facebook's planned <a href="https://www.wionews.com/world/us-lawmakers-question-facebook-over-plans-on-libra-cryptocurrency-236514">Libra cryptocurrency</a> and have a shared consensus about the need to act quickly, a French official said Wednesday.

Facebook last month unveiled <a href="https://www.wionews.com/world/facebook-needs-very-high-standard-for-libra-coin-us-treasury-steven-mnuchin-236268">its plans for Libra</a> in an announcement greeted with concern by governments and critics of the social network behemoth around the world.

The issue was at the forefront of the minds of ministers and central bankers from the G7 group of most developed economies as they kicked off a two-day meeting in Chantilly outside Paris on Wednesday.

"On Libra, we had a very constructive and detailed discussion with a very large and shared consensus on the need for action," said the official, who asked not to be named.

"Concerns (were) expressed by all the participants about the current situation and the need to act quickly."

The finance ministers of France and Germany had earlier expressed serious reservations about Facebook's plans because of Libra's possible impact on global financial stability.

"The G7 finance ministers and central bankers who are here have serious concerns," said German Finance Minister Olaf Scholz.

"They want to be sure that all existing regulations are adhered to, and if they should be changed in the future, so that we can guarantee the stability of the international financial system," he added.

"We are talking about currency stability, security, data protection and democratic control," he added.

French Finance Minister Bruno Le Maire, who has warned about Libra repeatedly since the launch announcement, said "the conditions are not yet in place today for Libra to be introduced."

He said he hoped the G7 would consider the necessity of a "framework or a regulation" and also "what would be the conditions that would make such an instrument feasible."

"Today, we cannot accept that an exchange instrument comes into being when it does not respect any of the precautionary rules that all sovereign currencies are required to abide by."

Their comments echoed warnings issued on Monday by US Treasury Secretary Steven Mnuchin, who was also present at the meeting.

Mnuchin said Facebook must meet "a very high standard" before it moves ahead with Libra, adding that US regulators have already expressed concerns to the company.

He said that these kinds of virtual currencies have in the past been associated with money laundering and illicit activities.

"Whether they're banks or non-banks, they're under the same regulatory environment," Mnuchin told reporters at the White House.

Libra is widely regarded as a challenger to dominant global player bitcoin. Expected to launch in the first half of 2020, Libra is designed to be backed by a basket of currency assets to avoid the wild swings of bitcoin and other cryptocurrencies. 
&nbsp;

The G7 group of the world's most developed economies are worried about Facebook's planned Libra cryptocurrency and have a shared consensus about the need to act quickly, a French official said Wednesday.

The G7 group of the world's most developed economies are worried about Facebook's planned Libra cryptocurrency and have a shared consensus about the need to act quickly, a French official said Wednesday. Facebook last month unveiled its plans for Libra in an announcement greeted with concern by governments and critics of the social network behemoth around the world. The issue was at the forefront of the minds of ministers and central bankers from the G7 group of most developed economies as they kicked off a two-day meeting in Chantilly outside Paris on Wednesday. "On Libra, we had a very constructive and detailed discussion with a very large and shared consensus on the need for action," said the official, who asked not to be named. "Concerns (were) expressed by all the participants about the current situation and the need to act quickly." The finance ministers of France and Germany had earlier expressed serious reservations about Facebook's plans because of Libra's possible impact on global financial stability. "The G7 finance ministers and central bankers who are here have serious concerns," said German Finance Minister Olaf Scholz. "They want to be sure that all existing regulations are adhered to, and if they should be changed in the future, so that we can guarantee the stability of the international financial system," he added. "We are talking about currency stability, security, data protection and democratic control," he added. French Finance Minister Bruno Le Maire, who has warned about Libra repeatedly since the launch announcement, said "the conditions are not yet in place today for Libra to be introduced." He said he hoped the G7 would consider the necessity of a "framework or a regulation" and also "what would be the conditions that would make such an instrument feasible." "Today, we cannot accept that an exchange instrument comes into being when it does not respect any of the precautionary rules that all sovereign currencies are required to abide by." Their comments echoed warnings issued on Monday by US Treasury Secretary Steven Mnuchin, who was also present at the meeting. Mnuchin said Facebook must meet "a very high standard" before it moves ahead with Libra, adding that US regulators have already expressed concerns to the company. He said that these kinds of virtual currencies have in the past been associated with money laundering and illicit activities. "Whether they're banks or non-banks, they're under the same regulatory environment," Mnuchin told reporters at the White House. Libra is widely regarded as a challenger to dominant global player bitcoin. Expected to launch in the first half of 2020, Libra is designed to be backed by a basket of currency assets to avoid the wild swings of bitcoin and other cryptocurrencies.

G7 worried over Facebook's Libra cryptocurrency: French official

Democratic and Republican lawmakers said on Tuesday that Facebook Inc's track record of what they described as untrustworthiness should stand in the way of it launching a digital currency, labelling the plan "delusional" and "crazy" at a Senate hearing.

Facebook is fighting to get Washington onside after it shocked regulators and lawmakers with its announcement on June 18 that it was hoping to launch a cryptocurrency called Libra in 2020.

Since then the social media company has faced criticism from policymakers and financial watchdogs at home and abroad who fear widespread adoption of the digital currency by Facebook's 2.38 billion users could upend the financial system.

"Facebook has demonstrated through scandal after scandal that it doesn't deserve our trust," Democratic senator Sherrod Brown, the ranking member of the Senate Banking Committee, said in his opening remarks. "We'd be crazy to give them a chance to let them experiment with people's bank accounts."

Brown added during questioning that he thought it was "delusional" to think individuals would trust the social media company with their "hard-earned" money.

Before announcing its Libra plans, Facebook was already facing a backlash over mishandling user data and not doing enough to prevent Russian interference in the 2016 U.S. presidential election.

David Marcus, the company's top executive overseeing the project, testified on issues ranging from how Libra could affect global monetary policy to how customer data will be handled.

He received a frosty welcome from Democratic lawmakers and several Republicans, who shared many of the same concerns.

"I don't trust you guys," said Republican Senator Martha McSally. "Instead of cleaning up your house you are launching into a new business model."

Marcus, who was president of PayPal from 2012 to 2014, tried to assuage concerns by promising that Facebook will not begin offering Libra until regulatory issues are addressed. "We know we need to take the time to get this right," Marcus, who is also due to testify before the House Financial Services Committee on Wednesday, told lawmakers.

Lawmakers raised a range of concerns, including about how the company plans to prevent money laundering, how consumers' data and funds will be protected and how the Geneva-based association created to run the system will be regulated.

"I know we have to earn people's trust for a very long period of time," Marcus said when asked whether consumers could trust Facebook not to share their payment information.

The social media company has pledged that its payments subsidiary called Calibra will only share customer data with Facebook and external third parties if it has consent, or in "limited cases," where it is necessary.

Under wraps

Critics have expressed anger that the company would advance such a potentially groundbreaking project so far without extensive input from policymakers, especially when the company was already in the spotlight over privacy issues.

Facebook allocated a small fraction of its vast workforce to work on the project, Kevin Weil, who runs product for the Libra initiative, told Reuters on June 18.

One former employee told Reuters the company tried to keep the project under wraps even internally. Staff who were not involved knew little about it, not even that it was operating under the name Libra.

In the weeks leading up to the announcement, the company began reaching out formally to key regulators including the Federal Reserve, the Treasury and the Commodity Futures Trading Commission. But two people with knowledge of the discussions said the conversations remained vague, with key details of the project discussed only on a theoretical level.

On Tuesday, US Securities and Exchange Commission chair Jay Clayton told Reuters on the sidelines of a Washington event that he had not discussed the Libra project with Facebook since its announcement but would welcome more information.

Some lawmakers have been frustrated by the lack of clarity from Facebook before and since June 18, three congressional sources said. One Democratic aide described the company's contacts with lawmakers as "inept and entitled." Facebook has said that it announced the project in its early stages to get feedback from stakeholders, a point Marcus reiterated at the hearing on Tuesday.

Democratic and Republican lawmakers said on Tuesday that Facebook Inc's track record of what they described as untrustworthiness should stand in the way of it launching a digital currency, labelling the plan "delusional" and "crazy" at a Senate hearing.

Democratic and Republican lawmakers said on Tuesday that Facebook Inc's track record of what they described as untrustworthiness should stand in the way of it launching a digital currency, labelling the plan "delusional" and "crazy" at a Senate hearing. Facebook is fighting to get Washington onside after it shocked regulators and lawmakers with its announcement on June 18 that it was hoping to launch a cryptocurrency called Libra in 2020. Since then the social media company has faced criticism from policymakers and financial watchdogs at home and abroad who fear widespread adoption of the digital currency by Facebook's 2.38 billion users could upend the financial system. "Facebook has demonstrated through scandal after scandal that it doesn't deserve our trust," Democratic senator Sherrod Brown, the ranking member of the Senate Banking Committee, said in his opening remarks. "We'd be crazy to give them a chance to let them experiment with people's bank accounts." Brown added during questioning that he thought it was "delusional" to think individuals would trust the social media company with their "hard-earned" money. Before announcing its Libra plans, Facebook was already facing a backlash over mishandling user data and not doing enough to prevent Russian interference in the 2016 U.S. presidential election. David Marcus, the company's top executive overseeing the project, testified on issues ranging from how Libra could affect global monetary policy to how customer data will be handled. He received a frosty welcome from Democratic lawmakers and several Republicans, who shared many of the same concerns. "I don't trust you guys," said Republican Senator Martha McSally. "Instead of cleaning up your house you are launching into a new business model." Marcus, who was president of PayPal from 2012 to 2014, tried to assuage concerns by promising that Facebook will not begin offering Libra until regulatory issues are addressed. "We know we need to take the time to get this right," Marcus, who is also due to testify before the House Financial Services Committee on Wednesday, told lawmakers. Lawmakers raised a range of concerns, including about how the company plans to prevent money laundering, how consumers' data and funds will be protected and how the Geneva-based association created to run the system will be regulated. "I know we have to earn people's trust for a very long period of time," Marcus said when asked whether consumers could trust Facebook not to share their payment information. The social media company has pledged that its payments subsidiary called Calibra will only share customer data with Facebook and external third parties if it has consent, or in "limited cases," where it is necessary. Under wraps Critics have expressed anger that the company would advance such a potentially groundbreaking project so far without extensive input from policymakers, especially when the company was already in the spotlight over privacy issues. Facebook allocated a small fraction of its vast workforce to work on the project, Kevin Weil, who runs product for the Libra initiative, told Reuters on June 18. One former employee told Reuters the company tried to keep the project under wraps even internally. Staff who were not involved knew little about it, not even that it was operating under the name Libra. In the weeks leading up to the announcement, the company began reaching out formally to key regulators including the Federal Reserve, the Treasury and the Commodity Futures Trading Commission. But two people with knowledge of the discussions said the conversations remained vague, with key details of the project discussed only on a theoretical level. On Tuesday, US Securities and Exchange Commission chair Jay Clayton told Reuters on the sidelines of a Washington event that he had not discussed the Libra project with Facebook since its announcement but would welcome more information. Some lawmakers have been frustrated by the lack of clarity from Facebook before and since June 18, three congressional sources said. One Democratic aide described the company's contacts with lawmakers as "inept and entitled." Facebook has said that it announced the project in its early stages to get feedback from stakeholders, a point Marcus reiterated at the hearing on Tuesday.

Facebook should not be trusted with 'crazy' cryptocurrency plan: US senators

Facebook Inc is "delusional" to believe people will trust it with their money, a US Senator said on Tuesday as lawmakers from both sides of the aisle questioned the social media company on its <a href="https://www.wionews.com/world/facebook-needs-very-high-standard-for-libra-coin-us-treasury-steven-mnuchin-236268">plans for a digital currency</a> at a hearing on Tuesday.

Facebook is fighting to get Washington onside after it shocked regulators and lawmakers with its announcement on June 18 that it was hoping to launch a new digital<a href="https://www.wionews.com/world/if-facebooks-libra-wants-to-become-a-bank-it-must-must-seek-new-banking-charter-trump-235162"> coin called Libra in 2020</a>.

Since then it has faced criticism from policymakers and financial watchdogs at home and abroad who fear widespread adoption of the digital currency by the social media giant's 2.38 billion users could upend the financial system.

"Facebook has demonstrated through scandal after scandal that it doesn't deserve our trust," Democratic senator Sherrod Brown, the ranking member of the Senate Banking Committee, said in his opening remarks. "We'd be crazy to give them a chance to let them experiment with people's bank accounts."

Brown added during questioning that he thought it was "delusional" to think individuals would trust the social media company with their "hard-earned" money.

The Senate Banking Committee is questioning David Marcus, the company's top executive overseeing the project, on issues ranging from how Libra could affect global monetary policy to how customer data will be handled.

Marcus, who was president of PayPal from 2012 to 2014, tried to assuage concerns in his opening remarks by promising that Facebook will not begin offering Libra until regulatory issues are addressed.&nbsp;

"We know we need to take the time to get this right," Marcus, who is also due to testify before the House Financial Services Committee on Wednesday, said. Marcus received a frosty welcome from Democratic lawmakers who already believe the company is too large and careless with consumer data.

Concerns raised through questions included how the company plans to prevent money laundering through the new payment system, how consumers' data and funds will be protected and how the Geneva-based association created to run the system will be regulated.

Republicans shared some of these worries, but appeared less hostile, even after US President Donald Trump and Treasury Secretary Steven Mnuchin voiced concerns over the past few days.

"They're going to have to convince us of very high standards before they have access to the US financial system," Mnuchin said on Monday.

Critics have expressed anger that the company would have got so far in its plans for such a potentially groundbreaking project without extensive input from policymakers, especially when it is already in the spotlight over privacy issues.

For example, the top Republican and Democrat on the Senate Banking Committee sent Facebook a letter on May 9 seeking information, including how the company would protect consumers' financial information. But Facebook did not write back until July 8, the committee said.

One Democratic aide described the company's contacts with lawmakers as "inept and entitled."

In its defence, Facebook has said that it announced the project in its early stages to get feedback from stakeholders. Marcus reiterated this at the hearing on Tuesday.

Facebook Inc is "delusional" to believe people will trust it with their money, a US Senator said on Tuesday as lawmakers from both sides of the aisle questioned the social media company on its plans for a digital currency at a hearing on Tuesday.

Facebook Inc is "delusional" to believe people will trust it with their money, a US Senator said on Tuesday as lawmakers from both sides of the aisle questioned the social media company on its plans for a digital currency at a hearing on Tuesday. Facebook is fighting to get Washington onside after it shocked regulators and lawmakers with its announcement on June 18 that it was hoping to launch a new digital coin called Libra in 2020. Since then it has faced criticism from policymakers and financial watchdogs at home and abroad who fear widespread adoption of the digital currency by the social media giant's 2.38 billion users could upend the financial system. "Facebook has demonstrated through scandal after scandal that it doesn't deserve our trust," Democratic senator Sherrod Brown, the ranking member of the Senate Banking Committee, said in his opening remarks. "We'd be crazy to give them a chance to let them experiment with people's bank accounts." Brown added during questioning that he thought it was "delusional" to think individuals would trust the social media company with their "hard-earned" money. The Senate Banking Committee is questioning David Marcus, the company's top executive overseeing the project, on issues ranging from how Libra could affect global monetary policy to how customer data will be handled. Marcus, who was president of PayPal from 2012 to 2014, tried to assuage concerns in his opening remarks by promising that Facebook will not begin offering Libra until regulatory issues are addressed. "We know we need to take the time to get this right," Marcus, who is also due to testify before the House Financial Services Committee on Wednesday, said. Marcus received a frosty welcome from Democratic lawmakers who already believe the company is too large and careless with consumer data. Concerns raised through questions included how the company plans to prevent money laundering through the new payment system, how consumers' data and funds will be protected and how the Geneva-based association created to run the system will be regulated. Republicans shared some of these worries, but appeared less hostile, even after US President Donald Trump and Treasury Secretary Steven Mnuchin voiced concerns over the past few days. "They're going to have to convince us of very high standards before they have access to the US financial system," Mnuchin said on Monday. Critics have expressed anger that the company would have got so far in its plans for such a potentially groundbreaking project without extensive input from policymakers, especially when it is already in the spotlight over privacy issues. For example, the top Republican and Democrat on the Senate Banking Committee sent Facebook a letter on May 9 seeking information, including how the company would protect consumers' financial information. But Facebook did not write back until July 8, the committee said. One Democratic aide described the company's contacts with lawmakers as "inept and entitled." In its defence, Facebook has said that it announced the project in its early stages to get feedback from stakeholders. Marcus reiterated this at the hearing on Tuesday.

US lawmakers question Facebook over plans on Libra cryptocurrency

Facebook must meet "a very high standard" before it moves ahead with its planned <a href="https://www.wionews.com/world/if-facebooks-libra-wants-to-become-a-bank-it-must-must-seek-new-banking-charter-trump-235162">digital currency Libra</a>, US Treasury Secretary Steven Mnuchin said Monday.

Mnuchin said US regulators have already expressed concerns to Facebook about the plan for a global cryptocurrency, noting that these kinds of virtual coins have in the past been associated with money laundering and illicit activities.

"Whether they're banks or non-banks, they're under the same regulatory environment," Mnuchin told reporters at the White House, adding that Facebook "will have to have a very high standard before they have access to the financial system."

Facebook last month unveiled its <a href="https://www.wionews.com/world/facebooks-libra-currency-under-fire-235697">plans for Libra</a>, widely regarded as a challenger to dominant global player bitcoin. Expected to launch in the first half of 2020, Libra is designed to be backed by a basket of currency assets to avoid the wild swings of bitcoin and other cryptocurrencies.

Mnuchin said the US Treasury welcomes "responsible innovations" that can improve the efficiency of the financial system but added: "Our overriding goal is to maintain the integrity of the financial system and protect it from abuse."

'National security issue'

He said US regulators have met with Facebook officials on this question, and how Facebook can protect against the new virtual coin being used for criminal activity.

"This is indeed a national security issue," the Treasury chief said.

Facebook, he added, must implement safeguards against the use of Libra for money laundering and terrorist financing and comply with other financial regulations.

Commenting on Facebook's claim that Libra could lower costs and help people without access to traditional financial services, Mnuchin said, "That's fine (but) they've got a lot of work to do to convince us they can get to that place."

Mnuchin's comments echoed concerns voiced by Federal Reserve Chairman Jerome Powell and regulators around the world, as well as by lawmakers set to open hearings this week on the plan by Facebook and its partners in the Libra project.

Hearing set Tuesday

David Marcus, who heads Facebook's digital wallet and blockchain efforts, said in testimony prepared for delivery Tuesday that he expects regulators to carry out an extensive review of the Libra project.

"The time between now and launch is designed to be an open process and subject to regulatory oversight and review," Marcus was to say in his remarks, which were released by the Senate Banking Committee.

"We know we need to take the time to get this right. And I want to be clear: Facebook will not offer the Libra digital currency until we have fully addressed regulatory concerns and received appropriate approvals."

Marcus said that Libra, whose association will be based in Geneva, will be supervised by the Swiss Financial Markets Supervisory Authority, but would also register with the US Treasury's FinCEN (Financial Crimes Enforcement Network) to comply with anti-money laundering regulations.

Facebook "will work with the Federal Reserve and other central banks to make sure Libra does not compete with sovereign currencies or interfere with monetary policy," Marcus added.

The companies behind Libra include payment giants Visa, MasterCard and PayPal, as well as ride-hailing apps Lyft and Uber.

Central bankers around the world have said they would carefully study the proposed currency and last week US President Donald Trump weighed in.

"I am not a fan of bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air," he said.

Facebook must meet "a very high standard" before it moves ahead with its planned digital currency Libra, US Treasury Secretary Steven Mnuchin said Monday. Mnuchin said US regulators have already expressed concerns to Facebook about the plan for a global cryptocurrency, noting that these kinds of virtual coins have in the past been associated with money laundering and illicit activities.

Facebook must meet "a very high standard" before it moves ahead with its planned digital currency Libra, US Treasury Secretary Steven Mnuchin said Monday. Mnuchin said US regulators have already expressed concerns to Facebook about the plan for a global cryptocurrency, noting that these kinds of virtual coins have in the past been associated with money laundering and illicit activities. "Whether they're banks or non-banks, they're under the same regulatory environment," Mnuchin told reporters at the White House, adding that Facebook "will have to have a very high standard before they have access to the financial system." Facebook last month unveiled its plans for Libra, widely regarded as a challenger to dominant global player bitcoin. Expected to launch in the first half of 2020, Libra is designed to be backed by a basket of currency assets to avoid the wild swings of bitcoin and other cryptocurrencies. Mnuchin said the US Treasury welcomes "responsible innovations" that can improve the efficiency of the financial system but added: "Our overriding goal is to maintain the integrity of the financial system and protect it from abuse." 'National security issue' He said US regulators have met with Facebook officials on this question, and how Facebook can protect against the new virtual coin being used for criminal activity. "This is indeed a national security issue," the Treasury chief said. Facebook, he added, must implement safeguards against the use of Libra for money laundering and terrorist financing and comply with other financial regulations. Commenting on Facebook's claim that Libra could lower costs and help people without access to traditional financial services, Mnuchin said, "That's fine (but) they've got a lot of work to do to convince us they can get to that place." Mnuchin's comments echoed concerns voiced by Federal Reserve Chairman Jerome Powell and regulators around the world, as well as by lawmakers set to open hearings this week on the plan by Facebook and its partners in the Libra project. Hearing set Tuesday David Marcus, who heads Facebook's digital wallet and blockchain efforts, said in testimony prepared for delivery Tuesday that he expects regulators to carry out an extensive review of the Libra project. "The time between now and launch is designed to be an open process and subject to regulatory oversight and review," Marcus was to say in his remarks, which were released by the Senate Banking Committee. "We know we need to take the time to get this right. And I want to be clear: Facebook will not offer the Libra digital currency until we have fully addressed regulatory concerns and received appropriate approvals." Marcus said that Libra, whose association will be based in Geneva, will be supervised by the Swiss Financial Markets Supervisory Authority, but would also register with the US Treasury's FinCEN (Financial Crimes Enforcement Network) to comply with anti-money laundering regulations. Facebook "will work with the Federal Reserve and other central banks to make sure Libra does not compete with sovereign currencies or interfere with monetary policy," Marcus added. The companies behind Libra include payment giants Visa, MasterCard and PayPal, as well as ride-hailing apps Lyft and Uber. Central bankers around the world have said they would carefully study the proposed currency and last week US President Donald Trump weighed in. "I am not a fan of bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air," he said.

Facebook needs 'very high standard' for Libra coin: US Treasury Steven Mnuchin

A proposal to prevent big technology companies from functioning as financial institutions or <a href="https://www.wionews.com/world/facebooks-libra-currency-under-fire-235697">issuing digital currencies </a>has been circulated for discussion by the Democratic majority that leads the House Financial Services Committee, according to a copy of the draft legislation.

In a sign of widening scrutiny after<a href="https://www.wionews.com/world/if-facebooks-libra-wants-to-become-a-bank-it-must-must-seek-new-banking-charter-trump-235162"> Facebook Inc's proposed Libra digital </a>coin aroused widespread objection, the bill proposes a fine of $1 million per day for violation of such rules.

Such a sweeping proposal would likely spark opposition from Republican members of the house who are keen on innovation, and would likely struggle to gather enough votes to pass the lower chamber.

Even if it were to pass the full house, it would still have to pass the Senate which would also likely be an uphill struggle.

Nevertheless, the draft proposal sends a strong message to large tech firms increasingly eyeing the financial services space.

The draft legislation, "Keep Big Tech Out Of Finance Act", describes a large technology firm as a company mainly offering an online platform service with at least $25 billion in annual revenue.

"A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as a medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System," it proposes.

Facebook, which would qualify to be such an entity, said last month it would launch its global cryptocurrency in 2020.

Facebook and 28 partners, including Mastercard Inc, PayPal Holdings Inc and Uber Technologies Inc, would form the Libra Association to govern the new coin. No banks are currently part of the group.

Last week, US President Trump criticised Libra and other cryptocurrencies and demanded that companies seek a banking charter and make themselves subject to US and global regulations if they wanted to "become a bank."

His comments came after Federal Reserve Chairman Jerome Powell told lawmakers that Facebook's plan to build a digital currency called Libra could not move forward unless it addressed concerns over privacy, money laundering, consumer protection and financial stability.

A proposal to prevent big technology companies from functioning as financial institutions or issuing digital currencies has been circulated for discussion by the Democratic majority that leads the House Financial Services Committee, according to a copy of the draft legislation.

A proposal to prevent big technology companies from functioning as financial institutions or issuing digital currencies has been circulated for discussion by the Democratic majority that leads the House Financial Services Committee, according to a copy of the draft legislation. In a sign of widening scrutiny after Facebook Inc's proposed Libra digital coin aroused widespread objection, the bill proposes a fine of $1 million per day for violation of such rules. Such a sweeping proposal would likely spark opposition from Republican members of the house who are keen on innovation, and would likely struggle to gather enough votes to pass the lower chamber. Even if it were to pass the full house, it would still have to pass the Senate which would also likely be an uphill struggle. Nevertheless, the draft proposal sends a strong message to large tech firms increasingly eyeing the financial services space. The draft legislation, "Keep Big Tech Out Of Finance Act", describes a large technology firm as a company mainly offering an online platform service with at least $25 billion in annual revenue. "A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as a medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System," it proposes. Facebook, which would qualify to be such an entity, said last month it would launch its global cryptocurrency in 2020. Facebook and 28 partners, including Mastercard Inc, PayPal Holdings Inc and Uber Technologies Inc, would form the Libra Association to govern the new coin. No banks are currently part of the group. Last week, US President Trump criticised Libra and other cryptocurrencies and demanded that companies seek a banking charter and make themselves subject to US and global regulations if they wanted to "become a bank." His comments came after Federal Reserve Chairman Jerome Powell told lawmakers that Facebook's plan to build a digital currency called Libra could not move forward unless it addressed concerns over privacy, money laundering, consumer protection and financial stability.

US lawmakers propose barring big tech companies from offering financial services, digital currencies

Facebook's planned virtual unit Libra, already under heavy attack from US President Donald Trump and global regulators, faces scepticism among the wider cryptocurrency community as well.

One theme -- besides Brexit -- dominated discussion among the movers and shakers from London's financial technology or FinTech industry as gathered for their annual get-together: the future of virtual currencies.

"Can I just ask you to raise your hand if you would not be willing to use Libra?" asked the moderator at an event at London's recent 'FinTech Week'.

In the room, filled with about 100 experts and media who closely track the sector, about two-thirds of participants raised their hand to express distrust at the upstart currency.

Helen Disney, founder and boss of Unblocked Events, which promotes the blockchain technology that powers many cryptocurrencies, acknowledged growing doubts over who exactly would oversee and regulate Libra's operation.

Power to the people

People are "concerned about how the governance... would work", Disney told AFP.

"The cryptocurrency community is very libertarian in thinking," its "about giving power to the people, the democratisation of finance, keeping away from big banks and companies who control (the) economy," she said

Last week's gathering came one month after Facebook announced to the world its plans for the virtual currency.

Libra, which is widely regarded as a challenger to dominant global player Bitcoin, is expected to launch in the first half of 2020.

Whereas Bitcoin is decentralised, Libra will be co-managed by 100 partner firms, including Facebook's newly-minted financial services division Calibra.

The companies behind Libra -- which will be backed with a basket of real-world currencies -- include payment giants Visa, MasterCard and PayPal, as well as taxi-hailing services Lyft and Uber.

To access Libra on smartphones, users will go through a virtual wallet that will also be named Calibra.

While Facebook boasts an enormous customer base dotted across the globe that should facilitate Libra's uptake, it firm also been plagued by privacy concerns that could make users hesitate.

"Can't wait for a cryptocurrency with the ethics of Uber, the censorship resistance of Paypal, and the centralisation of Visa, all tied together under the proven privacy of Facebook," said Sarah Jamie Lewis, head of non-profit research organisation Open Privacy.

Libra has meanwhile raised eyebrows among the world's financial regulators, including the Bank of England, the European Central Bank and the US Federal Reserve.

But Disney believes that Libra will finally force regulators to present clear regulation guidelines, as demanded by the cryptocurrency community itself.

"We have been waiting for a long time for a clearer signal (regarding) the regulation of cryptocurrencies and digital assets," she said.

But James Bennett, head of cryptocurrency research firm Bitassist, argues that Libra should not be seen in the same light as Bitcoin.

"In the long run, people may realise that Libra is not a cryptocurrency," Bennett said at the FinTech Week event.

"A true cryptocurrency should be resistant to attacks by all parties, from sovereign states to global corporations," he said, adding that "cryptocurrency is a type of money used to transfer value over the internet that cannot be stopped, confiscated or destroyed by any single entity".

'Based on thin air'

Trump has meanwhile unleashed a vicious attack on virtual currencies, slamming them for their alleged shadowy nature and arguing that Libra had no standing nor dependability -- unlike the dollar.

"I am not a fan of Bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air," Trump tweeted Thursday.

Facebook's planned virtual unit Libra, already under heavy attack from US President Donald Trump and global regulators, faces scepticism among the wider cryptocurrency community as well.

Facebook's planned virtual unit Libra, already under heavy attack from US President Donald Trump and global regulators, faces scepticism among the wider cryptocurrency community as well. One theme -- besides Brexit -- dominated discussion among the movers and shakers from London's financial technology or FinTech industry as gathered for their annual get-together: the future of virtual currencies. "Can I just ask you to raise your hand if you would not be willing to use Libra?" asked the moderator at an event at London's recent 'FinTech Week'. In the room, filled with about 100 experts and media who closely track the sector, about two-thirds of participants raised their hand to express distrust at the upstart currency. Helen Disney, founder and boss of Unblocked Events, which promotes the blockchain technology that powers many cryptocurrencies, acknowledged growing doubts over who exactly would oversee and regulate Libra's operation. Power to the people People are "concerned about how the governance... would work", Disney told AFP. "The cryptocurrency community is very libertarian in thinking," its "about giving power to the people, the democratisation of finance, keeping away from big banks and companies who control (the) economy," she said Last week's gathering came one month after Facebook announced to the world its plans for the virtual currency. Libra, which is widely regarded as a challenger to dominant global player Bitcoin, is expected to launch in the first half of 2020. Whereas Bitcoin is decentralised, Libra will be co-managed by 100 partner firms, including Facebook's newly-minted financial services division Calibra. The companies behind Libra -- which will be backed with a basket of real-world currencies -- include payment giants Visa, MasterCard and PayPal, as well as taxi-hailing services Lyft and Uber. To access Libra on smartphones, users will go through a virtual wallet that will also be named Calibra. While Facebook boasts an enormous customer base dotted across the globe that should facilitate Libra's uptake, it firm also been plagued by privacy concerns that could make users hesitate. "Can't wait for a cryptocurrency with the ethics of Uber, the censorship resistance of Paypal, and the centralisation of Visa, all tied together under the proven privacy of Facebook," said Sarah Jamie Lewis, head of non-profit research organisation Open Privacy. Libra has meanwhile raised eyebrows among the world's financial regulators, including the Bank of England, the European Central Bank and the US Federal Reserve. But Disney believes that Libra will finally force regulators to present clear regulation guidelines, as demanded by the cryptocurrency community itself. "We have been waiting for a long time for a clearer signal (regarding) the regulation of cryptocurrencies and digital assets," she said. But James Bennett, head of cryptocurrency research firm Bitassist, argues that Libra should not be seen in the same light as Bitcoin. "In the long run, people may realise that Libra is not a cryptocurrency," Bennett said at the FinTech Week event. "A true cryptocurrency should be resistant to attacks by all parties, from sovereign states to global corporations," he said, adding that "cryptocurrency is a type of money used to transfer value over the internet that cannot be stopped, confiscated or destroyed by any single entity". 'Based on thin air' Trump has meanwhile unleashed a vicious attack on virtual currencies, slamming them for their alleged shadowy nature and arguing that Libra had no standing nor dependability -- unlike the dollar. "I am not a fan of Bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air," Trump tweeted Thursday.

Facebook's Libra currency under fire

US President Donald Trump on Thursday criticised <a href="https://www.wionews.com/india-news/india-us-trade-talks-to-restart-friday-amid-few-signs-of-compromise-234949">Bitcoin, Facebook's proposed</a> Libra digital coin and other cryptocurrencies and demanded that companies seek a banking charter and make themselves subject to US and global regulations if they wanted to "become a bank."

"I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air," Trump wrote on Twitter.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity....
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1149472282584072192?ref_src=twsrc%5Etfw">July 12, 2019</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

"If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National and International," he added.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
....Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National...
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1149472284702208000?ref_src=twsrc%5Etfw">July 12, 2019</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

Trump's comments come one day after Federal Reserve Chairman Jerome Powell told lawmakers that Facebook's plan to build a digital currency called Libra cannot move forward unless it addresses concerns over privacy, money laundering, consumer protection and financial stability.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
...and International. We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1149472285905940480?ref_src=twsrc%5Etfw">July 12, 2019</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

Powell said the Fed has established a working group to follow the project and is coordinating with other government's central banks. The US Financial Stability Oversight Council, a panel of regulators that identifies risks to the financial system, is also expected to make a review.

Hours earlier on Thursday, Trump criticised large technology companies at an event at the White House, who he said treated conservative voices unfairly.

The Internet Association, a trade group representing major tech firms like Facebook, Twitter and Google, said, "Internet companies are not biased against any political ideology, and conservative voices in particular have used social media to great effect." 
&nbsp;

US President Donald Trump on Thursday criticised Bitcoin, Facebook's proposed Libra digital coin and other cryptocurrencies and demanded that companies seek a banking charter and make themselves subject to US and global regulations if they wanted to "become a bank.

US President Donald Trump on Thursday criticised Bitcoin, Facebook's proposed Libra digital coin and other cryptocurrencies and demanded that companies seek a banking charter and make themselves subject to US and global regulations if they wanted to "become a bank." "I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air," Trump wrote on Twitter. I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity.... — Donald J. Trump (@realDonaldTrump) July 12, 2019 × "If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National and International," he added. ....Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National... — Donald J. Trump (@realDonaldTrump) July 12, 2019 × Trump's comments come one day after Federal Reserve Chairman Jerome Powell told lawmakers that Facebook's plan to build a digital currency called Libra cannot move forward unless it addresses concerns over privacy, money laundering, consumer protection and financial stability. ...and International. We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar! — Donald J. Trump (@realDonaldTrump) July 12, 2019 × Powell said the Fed has established a working group to follow the project and is coordinating with other government's central banks. The US Financial Stability Oversight Council, a panel of regulators that identifies risks to the financial system, is also expected to make a review. Hours earlier on Thursday, Trump criticised large technology companies at an event at the White House, who he said treated conservative voices unfairly. The Internet Association, a trade group representing major tech firms like Facebook, Twitter and Google, said, "Internet companies are not biased against any political ideology, and conservative voices in particular have used social media to great effect."

If Facebook's Libra wants to become a bank, it must seek new banking charter: Trump

<a href="https://www.wionews.com/world/forget-bitcoin-millionaires-bezos-gates-may-become-trillionaires-29476">Bitcoin</a> surged to a near 16-month high above $11,000 Monday, overshadowing showings across stock, foreign exchange and commodity markets, with investors looking ahead to the week's G20 summit.

Bitcoin reached $11,251.21, surpassing $10,000 for the first time since March last year, as the cryptocurrency sector got a huge boost from Facebook's unveiling of its own digital unit Libra, analysts said.&nbsp;

"The strong resurgence in the bitcoin price is mainly due to the renewed mainstreaming interest in cryptocurrencies and the technology which underlines them," Naeem Aslam, an analyst at trading group ThinkMarkets, said.

"Projects like Facebook's Libra have provided a much-needed tailwind for this space."

The social network plans to launch Libra next year, with the backing by a basket of real-world currencies and a consortium of companies including Visa, MasterCard, PayPal and Uber.

"<a href="https://www.wionews.com/business-economy/bitcoin-trading-volume-hits-two-year-low-in-march-208110">Bitcoin</a> volatility is likely to persist, with $12,000 and $15,000 as the next two critical resistance levels," said OANDA senior market analyst Edward Moya.

Bitcoin has risen about 20 per cent this month alone but is still well off record levels near $20,000 seen at the end of 2017.

Elsewhere Monday, oil prices nudged higher as rising US-Iran tensions continued to fuel supply concerns.

Stock markets were largely steady ahead of a crunch meeting between US President Donald Trump and Chinese counterpart Xi Jinping at the weekend summit of 20 major economies.

Markets are waiting to see if Trump and Xi can break an impasse in their trade war when they meet on the sidelines of the event in Japan.

Global equities last week rallied after Trump hailed positive telephone talks between the pair, fuelling hopes of a possible end to their long-running tariffs battle.

"No one thinks the US and China will do a deal in Osaka, but there is some hope that we will have a positive development that marks a shift in the rhetoric and a re-energising of talks following the breakdown in the recent discussions," said Neil Wilson, chief market analyst at Markets.com.

The dollar meanwhile dropped Monday, continuing to face pressure from expectations that the Federal Reserve could lower US interest rates as soon as July as the economy shows signs of softening amid the trade war with China.

Bitcoin surged to a near 16-month high above $11,000 Monday, overshadowing showings across stock, foreign exchange and commodity markets, with investors looking ahead to the week's G20 summit.

Bitcoin surged to a near 16-month high above $11,000 Monday, overshadowing showings across stock, foreign exchange and commodity markets, with investors looking ahead to the week's G20 summit. Bitcoin reached $11,251.21, surpassing $10,000 for the first time since March last year, as the cryptocurrency sector got a huge boost from Facebook's unveiling of its own digital unit Libra, analysts said. "The strong resurgence in the bitcoin price is mainly due to the renewed mainstreaming interest in cryptocurrencies and the technology which underlines them," Naeem Aslam, an analyst at trading group ThinkMarkets, said. "Projects like Facebook's Libra have provided a much-needed tailwind for this space." The social network plans to launch Libra next year, with the backing by a basket of real-world currencies and a consortium of companies including Visa, MasterCard, PayPal and Uber. "Bitcoin volatility is likely to persist, with $12,000 and $15,000 as the next two critical resistance levels," said OANDA senior market analyst Edward Moya. Bitcoin has risen about 20 per cent this month alone but is still well off record levels near $20,000 seen at the end of 2017. Elsewhere Monday, oil prices nudged higher as rising US-Iran tensions continued to fuel supply concerns. Stock markets were largely steady ahead of a crunch meeting between US President Donald Trump and Chinese counterpart Xi Jinping at the weekend summit of 20 major economies. Markets are waiting to see if Trump and Xi can break an impasse in their trade war when they meet on the sidelines of the event in Japan. Global equities last week rallied after Trump hailed positive telephone talks between the pair, fuelling hopes of a possible end to their long-running tariffs battle. "No one thinks the US and China will do a deal in Osaka, but there is some hope that we will have a positive development that marks a shift in the rhetoric and a re-energising of talks following the breakdown in the recent discussions," said Neil Wilson, chief market analyst at Markets.com. The dollar meanwhile dropped Monday, continuing to face pressure from expectations that the Federal Reserve could lower US interest rates as soon as July as the economy shows signs of softening amid the trade war with China.

After Facebook's cryptocurrency Libra, Bitcoin surges above $11,000

France is creating a G7 task force to study how central banks ensure <a href="https://www.wionews.com/world/libra-facebook-unveils-cryptocurrency-meant-to-be-new-global-currency-228282">cryptocurrencies like Facebook's Libra</a> are governed by regulations ranging from money-laundering laws to consumer-protection rules, France's central bank governor said on Friday.

Governor Francois Villeroy de Galhau said the task force would be led by Benoit Coeure, a European Central Bank board member.

Facebook Inc announced plans this week to introduce a new global cryptocurrency called Libra, part of an effort to expand into digital payments.

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/facebook-unveils-plan-for-cryptocurrency-228532/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

It has joined with 28 partners, including Mastercard, PayPal and Uber, to form Libra Association, a Geneva-based entity that will govern the new digital coin, according to marketing materials and interviews with executives. No banks are yet part of the group.

Facebook's announcement drew a fast, worried reaction. The US&nbsp;Senate Banking Committee said it would hold a hearing on the plans next month. David Marcus, who oversees Facebook's blockchain efforts, is expected to testify, according to a source in Washington familiar with the matter.

Bank of England Governor Mark Carney said Libra had to be safe or it would not happen, and that the world's major central banks would need to have oversight.

France, which holds the rotating presidency of the Group of Seven nations, has said it does not oppose Facebook's creating an instrument for financial transactions. But it adamantly opposes that instrument becoming a sovereign currency.

"We want to combine being open to innovation with firmness on regulation. This is in everyone's interest," Villeroy told finance industry officials.

The concept of a "stable" cryptocurrency still needs to be defined, Villeroy said. In particular, what such instruments are stable against and how fixed their exchange rates need to be determined.

Villeroy also called for a network of national anti-money-laundering authorities, coordinated by the European Banking Authority, to carry out emergency measures and even substitute for national authorities, rather than creating a specialised European agency.

Several ECB officials, including Coeure, have argued in favour of creating such an agency over the past months.

France is creating a G7 task force to study how central banks ensure cryptocurrencies like Facebook's Libra are governed by regulations ranging from money-laundering laws to consumer-protection rules, France's central bank governor said on Friday.

France is creating a G7 task force to study how central banks ensure cryptocurrencies like Facebook's Libra are governed by regulations ranging from money-laundering laws to consumer-protection rules, France's central bank governor said on Friday. Governor Francois Villeroy de Galhau said the task force would be led by Benoit Coeure, a European Central Bank board member. Facebook Inc announced plans this week to introduce a new global cryptocurrency called Libra, part of an effort to expand into digital payments. It has joined with 28 partners, including Mastercard, PayPal and Uber, to form Libra Association, a Geneva-based entity that will govern the new digital coin, according to marketing materials and interviews with executives. No banks are yet part of the group. Facebook's announcement drew a fast, worried reaction. The US Senate Banking Committee said it would hold a hearing on the plans next month. David Marcus, who oversees Facebook's blockchain efforts, is expected to testify, according to a source in Washington familiar with the matter. Bank of England Governor Mark Carney said Libra had to be safe or it would not happen, and that the world's major central banks would need to have oversight. France, which holds the rotating presidency of the Group of Seven nations, has said it does not oppose Facebook's creating an instrument for financial transactions. But it adamantly opposes that instrument becoming a sovereign currency. "We want to combine being open to innovation with firmness on regulation. This is in everyone's interest," Villeroy told finance industry officials. The concept of a "stable" cryptocurrency still needs to be defined, Villeroy said. In particular, what such instruments are stable against and how fixed their exchange rates need to be determined. Villeroy also called for a network of national anti-money-laundering authorities, coordinated by the European Banking Authority, to carry out emergency measures and even substitute for national authorities, rather than creating a specialised European agency. Several ECB officials, including Coeure, have argued in favour of creating such an agency over the past months.

Creating G7 task force to ensure Facebook's Libra governed by regulations: France

Facebook Inc has unveiled plans to launch a cryptocurrency called Libra. Watch this video to know more.

Facebook unveils plan for cryptocurrency

Cryptocurrencies live in a volatile, roller-coaster world, which Facebook is seeking to change with its new Libra digital money.

The new digital currency will be overseen by a nonprofit association and backed with real assets to serve as a reliable, stable form of globally accepted money that lives essentially on smartphones.

How do cryptocurrencies work?

To use <a href="https://www.wionews.com/world/libra-facebook-unveils-cryptocurrency-meant-to-be-new-global-currency-228282">currencies like Libra</a>, people will need to install software referred to as a digital wallet.

Several digital wallets are available, but one called Calibra is being built by a Facebook subsidiary for Apple- and Android-powered smartphones and integrated with the social network's Messenger and WhatsApp mobile services.

This system "lets everyone store their money securely in their phone," Calibra vice president of product Kevin Weil told AFP.

A digital wallet chosen by the user is linked to bank accounts or credit cards for transfers or online transactions.

"The same way you can pick any browser to go on the internet, you can pick any digital wallet," Weil said.

What are the advantages?

Libra was released as an open ecosystem, so any business or service may accept it for payments. Financial institutions could also offer credit or loans in Libra.

"Imagine storing your life savings in your house; it is safer to take it with you on the go on your phone," Weil said.

Calibra, for example, could be used to send money to friends or family members in another country, or shop at stores online or in the real world the same way they might use Apple Pay or Google Pay.

More than a billion people already use WhatsApp and Messenger to communicate, so providing a way to send money makes sense.

"Over time, as the Libra ecosystem grows and Libra is built into products and services, there will be more things you can just do with Libra," Weil said.

How is cash converted to crypto?&nbsp;

People without access to banks could go to currency exchange or merchant to convert cash into Libra.

Once on a smartphone, Libra could be sent text-message style, with recipients having the option to save it in their own wallets for future use or convert it to their local currency.

"We make it easy to go back and forth to local currency," Weil said.

"If you are unbanked, you will have locations like money exchanges that operate with Libra."

Currency exchange fees would be market-driven, but likely less than remittance fees charged by businesses that wire funds.

Calibra has built-in fraud and password recovery protections, and there is a "know-your-customer" process that requires people to initially provide some form of government identification.

"This is people's money; we feel a huge responsibility to keep it safe," Weil said.

Cryptocurrencies live in a volatile, roller-coaster world, which Facebook is seeking to change with its new Libra digital money. The new digital currency will be overseen by a nonprofit association and backed with real assets to serve as a reliable, stable form of globally accepted money that lives essentially on smartphones.

Cryptocurrencies live in a volatile, roller-coaster world, which Facebook is seeking to change with its new Libra digital money. The new digital currency will be overseen by a nonprofit association and backed with real assets to serve as a reliable, stable form of globally accepted money that lives essentially on smartphones. How do cryptocurrencies work? To use currencies like Libra, people will need to install software referred to as a digital wallet. Several digital wallets are available, but one called Calibra is being built by a Facebook subsidiary for Apple- and Android-powered smartphones and integrated with the social network's Messenger and WhatsApp mobile services. This system "lets everyone store their money securely in their phone," Calibra vice president of product Kevin Weil told AFP. A digital wallet chosen by the user is linked to bank accounts or credit cards for transfers or online transactions. "The same way you can pick any browser to go on the internet, you can pick any digital wallet," Weil said. What are the advantages? Libra was released as an open ecosystem, so any business or service may accept it for payments. Financial institutions could also offer credit or loans in Libra. "Imagine storing your life savings in your house; it is safer to take it with you on the go on your phone," Weil said. Calibra, for example, could be used to send money to friends or family members in another country, or shop at stores online or in the real world the same way they might use Apple Pay or Google Pay. More than a billion people already use WhatsApp and Messenger to communicate, so providing a way to send money makes sense. "Over time, as the Libra ecosystem grows and Libra is built into products and services, there will be more things you can just do with Libra," Weil said. How is cash converted to crypto? People without access to banks could go to currency exchange or merchant to convert cash into Libra. Once on a smartphone, Libra could be sent text-message style, with recipients having the option to save it in their own wallets for future use or convert it to their local currency. "We make it easy to go back and forth to local currency," Weil said. "If you are unbanked, you will have locations like money exchanges that operate with Libra." Currency exchange fees would be market-driven, but likely less than remittance fees charged by businesses that wire funds. Calibra has built-in fraud and password recovery protections, and there is a "know-your-customer" process that requires people to initially provide some form of government identification. "This is people's money; we feel a huge responsibility to keep it safe," Weil said.

How cryptocurrencies can replace other pay options

Facebook is leaping into the world of <a href="https://www.wionews.com/world/facebooks-cryptocurrency-based-payments-system-gets-big-backers-reports-227004">cryptocurrency with its own digital money</a>, designed to let people save, send or spend money as easily as firing off text messages.

"Libra" -- described as "a new global currency" -- was unveiled Tuesday in a new initiative in payments for the world's biggest social network with the potential to bring crypto-money out of the shadows and into the mainstream.

Facebook and some two dozen partners released a prototype of Libra as an open source code to be used by developers interested in weaving it into apps, services or businesses ahead of a rollout as global digital money next year.

An eponymous non-profit association based in Geneva will oversee the blockchain-based Libra, maintaining a real-world asset reserve to keep its value stable.

The initiative has the potential to allow more than a billion "unbanked" people around the world access to online commerce and financial services, said Libra Association head of policy and communications Dante Disparte.

"We believe if you give people access to money and opportunity at the lowest cost, the way the internet itself did in the past with information, you can create a lot more stability than we have had up until now," Disparte said.

Libra Association debuted with 28 members including Mastercard, Visa, Stripe, Kiva, PayPal, Lyft, Uber and Women's World Banking.

"Sending money to your friend shouldn't be harder than getting them an Uber ride home," said Uber head of payments and risk Peter Hazlehurst.

"Libra has the potential to bridge the gap between traditional financial networks and new digital currency technology, while reducing the costs for everyone."

Facebook will be just one voice among many in the association, but is separately building a digital wallet called Calibra.

"We view this as a complement to Facebook's mission to connect people wherever they are; that includes allowing them to exchange value," Calibra vice president of operations Tomer Barel told AFP.

"Many people who use Facebook are in countries where there are barriers to banking or credit."

Calibra is being built into Facebook's Messenger and WhatsApp with a goal of letting users send Libra as easily as they might fire off a text message.

Libra learned from the many other cryptocurrencies that have preceded it such as bitcoin and is designed to avoid the roller-coaster valuations that have attracted speculation and caused ruin.

Real-world currency used to buy Libra will go into a reserve backing the digital money, the value of which will mirror stable currencies such as the US dollar and the euro, according to its creators.

"It is backed by a reserve of assets that ensures utility and low volatility," Tomer said.

For the digital currency to operate on a global scale, Libra is relying on a platform of blockchain technology that uses about 100 trusted computer "nodes" to validate and register transactions.

The Libra Association will be the only entity able to "mint or burn" the digital currency, maintaining supply in tune with demand and assets in reserve, according to Barel.

"It is not about trusting Facebook, it is effectively trust in the association's founding organizations that this is independent and democratic," Disparte said.

The launch comes with Facebook seeking to move past a series of lapses on privacy and data protection which have tarnished its image and spark scrutiny from regulators around the world.

Chief executive Mark Zuckerberg has promised a new direction for Facebook built around smaller groups, private messaging and payments.

The new Calibra digital wallet promises to eventually give Facebook opportunities to build financial services into its offerings, offer expand its own commerce and let more small businesses buy ads at the social network.

"We certainly see long-term value for Facebook," Barel said.

Financial information at Calibra will be kept strictly separate from social data at Facebook and won't be used to target ads, Calibra vice president of product Kevin Weil told AFP.

Libra will be a regulated currency, subject to local laws in markets regarding fraud, guarding against money laundering and more, according to Weil.

Facebook is leaping into the world of cryptocurrency with its own digital money, designed to let people save, send or spend money as easily as firing off text messages.

Facebook is leaping into the world of cryptocurrency with its own digital money, designed to let people save, send or spend money as easily as firing off text messages. "Libra" -- described as "a new global currency" -- was unveiled Tuesday in a new initiative in payments for the world's biggest social network with the potential to bring crypto-money out of the shadows and into the mainstream. Facebook and some two dozen partners released a prototype of Libra as an open source code to be used by developers interested in weaving it into apps, services or businesses ahead of a rollout as global digital money next year. An eponymous non-profit association based in Geneva will oversee the blockchain-based Libra, maintaining a real-world asset reserve to keep its value stable. The initiative has the potential to allow more than a billion "unbanked" people around the world access to online commerce and financial services, said Libra Association head of policy and communications Dante Disparte. "We believe if you give people access to money and opportunity at the lowest cost, the way the internet itself did in the past with information, you can create a lot more stability than we have had up until now," Disparte said. Libra Association debuted with 28 members including Mastercard, Visa, Stripe, Kiva, PayPal, Lyft, Uber and Women's World Banking. "Sending money to your friend shouldn't be harder than getting them an Uber ride home," said Uber head of payments and risk Peter Hazlehurst. "Libra has the potential to bridge the gap between traditional financial networks and new digital currency technology, while reducing the costs for everyone." Facebook will be just one voice among many in the association, but is separately building a digital wallet called Calibra. "We view this as a complement to Facebook's mission to connect people wherever they are; that includes allowing them to exchange value," Calibra vice president of operations Tomer Barel told AFP. "Many people who use Facebook are in countries where there are barriers to banking or credit." Calibra is being built into Facebook's Messenger and WhatsApp with a goal of letting users send Libra as easily as they might fire off a text message. Libra learned from the many other cryptocurrencies that have preceded it such as bitcoin and is designed to avoid the roller-coaster valuations that have attracted speculation and caused ruin. Real-world currency used to buy Libra will go into a reserve backing the digital money, the value of which will mirror stable currencies such as the US dollar and the euro, according to its creators. "It is backed by a reserve of assets that ensures utility and low volatility," Tomer said. For the digital currency to operate on a global scale, Libra is relying on a platform of blockchain technology that uses about 100 trusted computer "nodes" to validate and register transactions. The Libra Association will be the only entity able to "mint or burn" the digital currency, maintaining supply in tune with demand and assets in reserve, according to Barel. "It is not about trusting Facebook, it is effectively trust in the association's founding organizations that this is independent and democratic," Disparte said. The launch comes with Facebook seeking to move past a series of lapses on privacy and data protection which have tarnished its image and spark scrutiny from regulators around the world. Chief executive Mark Zuckerberg has promised a new direction for Facebook built around smaller groups, private messaging and payments. The new Calibra digital wallet promises to eventually give Facebook opportunities to build financial services into its offerings, offer expand its own commerce and let more small businesses buy ads at the social network. "We certainly see long-term value for Facebook," Barel said. Financial information at Calibra will be kept strictly separate from social data at Facebook and won't be used to target ads, Calibra vice president of product Kevin Weil told AFP. Libra will be a regulated currency, subject to local laws in markets regarding fraud, guarding against money laundering and more, according to Weil.

Libra: Facebook unveils cryptocurrency meant to be new 'global currency'

libra

Libra, News on Libra, stories on Libra, articles on Libra, Libra stories at Wion, Libra news, Libra latest news