Bank Of Japan Deputy Governor Predicts Huge Libra User Base

Bank of Japan Deputy Governor Masayoshi Amamiya predicts that Facebook’s Libra cryptocurrency will have a huge user base and warns the social media giant to be compliant with the money laundering regulations. Let’s see what he had to say in the coming altcoin news below.

According to Amamiya, Libra could potentially reach a huge user base in the future. Facebook, therefore, has to act responsibly and has to be compliant with all the anti-money laundering and risk management regulation in order to ensure a secure payment service:

 “As for Libra, we must bear in mind that the potential global user-base could be enormous.’’

During the Reuters Event, Bank Of Japan Deputy Governor urged the central banks around the world to remain vigilant about the massive impact Libra can have on the community but also on the entire banking and settlement systems. Amamiya previously expressed his concerns about Facebook’s crypto project. Back on Wednesday, the Japan central bank stated that Libra poses a significant risk to the existing financial system. The reason why the bank is worried is because of the fact that Facebook’s Libra cryptocurrency will be pegged to more than one fiat currencies. The regulators of countries around the world will have really low regulatory influence over the cryptocurrency.

As noted in the latest cryptocurrency news, Facebook is expected to invest a large chunk of the Libra profits in government securities and the cryptocurrency will cause an interest rate volatility, therefore, having a destabilizing effect on the world economy. Other countries are also imposing strict regulations for the Libra crypto project. The governor of the French central bank Francois Villeroy de Galhau also announced that the country is forming a task force with the G7 nations in order to regulate the Libra crypto project. On other events,  Congress demanded Facebook to ‘’cease its work on Libra’’ and to halt the launch of the cryptocurrency until the government says otherwise.

The cease order for Facebook is a result of the moratorium call by many non-profit organizations including the Americans for Financial Reform to Public Citizen and Consumer Reports that actually signed a petition. The NGOs claim that the US government has to evaluate the crypto project and to decide whether it is too dangerous to be released to the public.