Libra coins from Facebook have come under strong regulators and lawmakers scrutiny in Europe.
Digital currencies are coming under the scanner, currently. Germany and France are worried about the libra as the financial security risk about the currency has to be considered.
Facebook is already under scrutiny with many scandals such as data privacy. Experts are worried about how user information will be protected by Facebook, once the digital currency is used by them. This is a cause of worry to regulators in the U.S., the U.K., and the Eurozone.
Further, it is a private sector company and libra is competing with major currencies like the dollar and the euro.
Key issues against the libra are financial security, anti-money laundering laws, and investor protection.
On its part, Facebook argues that Libra will continue to maintain a stable value, as it will be tied to other currencies like the dollar.
David Marcus, its executive says that the Libra is backed by a basket of strong currencies. There is no creation of new money, he adds.
Facebook has been in constant touch with global regulators. The Libra is to be launched in 2020 and it is trying to convince regulators, over their fears about the digital coin.
However, global industrial experts acknowledge that digital currencies are here to stay. Despite the antagonism over the Libra, digital currencies have to be seriously considered say, experts.
Facebook is an important platform having more than two billion users, actively involved in it every month. It partners with Libra Association, which is a Switzerland-based consortium. It also includes others like Visa, Vodafone, and Uber.
Angela Merkel the Chancellor of Germany has said that the digital transformation has to be welcomed but the risks arising from it have to be tackled, as it is a new technology.
France and Germany are more supportive of developing an alternate public cryptocurrency for Europe.