Wednesday, May 22, 2024

Facebook’s Libra Regulation – What is all this hype about?

Facebook is coming up with their own brand new cryptocurrency which is Libra. But there is a huge hype revolving around its launch and regulation measures. Most of the queries revolve around “How” and “Why”. Many wonder, would the past blunders like that of Cambridge Analytica cause detrimental effects to Libra’s regulation? How exactly it would be managed and regulated? Why there is a dire need for strict regulation measures to operate Libra? All these questions are creating a buzz among the consumers and investors. Though, release may be a bit far away but everyone want a trustworthy regulation before its commencement.

  • Regulating Libra – But how?

It is one of the most frequently asked question right now. Everyone seems to have their opinions and suggestions. But, I guess, only Facebook, themselves will have the best answer to it. David Marcus, the head of Facebook Calibra, believes that it will be regulated by some financial regulator in Switzerland. It will also follow the National privacy regulator from Switzerland as well. As Libra Association is based in Switzerland, so all the regulation measures are expected to operate from there. Moreover, the regulating services like Calibra and Digital Wallet will have the involvement of US and state regulators.

  • Will the suit of any other cryptocurrency be followed?

One always look and take lessons from the success stories of others. The adopted way may not be exactly similar to others, but the same footsteps can lead to same destination at times. So is the case over here. David Marcus shed the light on borrowing the regulating measures of the Bitcoin, a cryptocurrency Giant. Bitcoin’s regulatory roadmap is actually pretty amazing. It does not have many intermediaries, which means that no one can be held accountable if things go wrong. This is the beauty of decentralization. David Marcus believe that such open transactions which are pseudonymous are better than banks for global law enforcement.

  • Will all this hype reap rewards at the end?

One must hope for the best, but also be prepared for the worst possible scenario to happen as well. Though, the confusions surrounding the regulation measures may be mind boggling but once it is over, the picture will become clearer. One thing is for sure, Facebook’s Libra is too big of a thing to fail. It will surely reap results in long term. If it doesn’t exceed the expectations, it will surely satisfy it. If the privacy issues are well sorted, and the uncertainty revolving around the release is over, it can be a real success.

Monesh Kumar
Monesh Kumar
Monesh Kumar is a cryptocurrency and blockchain enthusiast. He trades cryptocurrencies and holds some but he prefers holding Bitcoin, Ethereum & Cardano.

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