Facebook is not backing out on its global cryptocurrency Libra. The team behind the idea moved into Israel to seek regulatory clarity from the country’s policymakers.
This week, Facebook’s team headed by VP Risk and Operations of Calibra, Tomer Barel, met with Israel’s inter-ministerial team on regulation of cryptocurrency to dissect the social platforms giant’s movement into the digital currency world.
Joined by a founding member of Facebook’s Libra project, Barel, who is resident in Israel, held a meeting at the bank of Israel on Sunday where he discussed with the said inter-ministerial team.
In the meeting were Representatives of the country’s National Economic Council, the Capital Market, Insurance and Savings Authority, the Israel Money Laundering and Terror Financing Prohibition Authority, Israel Tax Authority, Israel Securities Authority, Ministry of Justice, Ministry of Finance, and importantly, the Bank of Israel, popular Israeli newspaper Globe has claimed.
The Bank of Israel confirmed to the popular news magazine that the meeting actually took place. According to the bank, the inter-ministerial team responsible for granting regulatory approvals to cryptocurrency related businesses do hold conversations with fintech firms in Israel and across the globe.
80 Percent of Issues With U.S. Regulators Resolved
Facebook team were the only fintech organisation that attended the meeting. At the gathering, the Facebook’s Libra team, according to Globe, said 80 percent of the issues it has with the U.S. regulators regarding the Global Libra currency have been resolved.
During the conversation, Barel told regulators in the country, Libra is ready with Israel’s regulatory policies, assuring that Facebook won’t have access to the data of the cryptocurrency.
Earlier, Israel Bitcoin Association have written to the Governor of the Bank of Israel Amir Yaron, advising that they legalise Facebook’s Libra.
Facebook Confirms Uncertainty of Libra’s Launch
According to a report released at the early hours of the day, the much lingering statement that Facebook’s Libra may not go live again due to the regulatory issues has also been affirmed by the social media giant Facebook itself.
This was announced in a quarterly report issued out by the tech company to United States Securities and Exchange Commission.
While highlighting the obstacle the nascent innovation would be facing due to regulations from world nations, Facebook noted that: “there can be no assurance that Libra or our associated products and services will be made available in a timely manner, or at all.”
Facebook averred that law and regulatory scrutiny surrounding cryptocurrency as well as other evolving menaces are obstructing the taking off of Libra and its business reputation around the world, are .
“We will also incur increased costs in connection with our participation in the Libra Association and the development and marketing of associated products and services, and our investments may not be successful. Any of these events could adversely affect our business, reputation, or financial results,” Facebook concluded.
However, the statements of Barel at the gathering are opposite of Facebook’s action. The social media giant at the moment is considering to stop the launch of cryptocurrency Libra.
Ripple CEO Tells Congress to Differentiate XRP from Facebook’s Libra
Ripple CEO, Brad Garlinghouse, and the executive chairman, Chris Larsen have warned the U.S. congress not to treat XRP the same way it is treating Facebook’s Libra, telling the policymakers Ripple is ready to comply with regulations the same way it is doing with other regulators across the world.
In a letter on Sunday, the financial guru said countless numbers of blockchain and cryptocurrency firm willing to listen and abide by regulatory policies should not be treated like shady projects.
Ripple, who warned the U.S. congress after it saw how Facebook was bashed. Had at the beginning of the uproar revolving around Facebook’s Libra said the digital global currency is not in any way a threat to its solutions.