RBA puts the brakes on Facebook’s cryptocurrency plans for Australia

Following a submission to the senate, the Reserve Bank of Australia (RBA) has expressed its concerns over social media giant, Facebook’s planned cryptocurrency, Libra.

The RBA expressed concerns over the current risks and regulations of stablecoins such as Libra, stating in the submission, “Libra has prompted regulators globally to closely consider the potential risks and benefits of cryptocurrencies, with a particular focus on stablecoins with the potential to operate on a global scale.”

In the report the RBA stated that it is supportive of the G7’s (Group of Seven) view that global stablecoins could be, “more efficient and inclusive than existing payment methods, particularly for cross-border payments.” But also agreed with the G7’s suggestion that, “such proposals raise significant legal and regulatory risks, including to consumer/investor protection, data privacy, monetary policy, and financial stability.”

What is Facebook Libra?

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