// By Mariama FOFANA //
Last June 2019, Mark Zuckerberg — CEO of Facebook — officially presented Libra, the highly anticipated crypto currency. It should allow people all around the world to purchase on the internet but also in physical stores. This crypto money is (as expected) mainly based on a blockchain technology. Its launch has been set in early 2020, nonetheless, contrary to the Bitcoin, Libra is supposedly well structured enough thanks to the currencies such as euro that control its value. In spite of this, Libra lost many of its big sponsors like Visa or Paypal, making its launch tremendously difficult. Moreover, government representatives from all over the world shared their disagreement towards Facebook’s coin. Indeed, countries like France, Italy or Germany firmly stated their skepticism not to say hostility during the G7 that took place last Friday, October 18th in Washington (USA). The main concern is giving the opportunity to a private entity to own a sovereign currency that could possibly outgrow the traditional currencies like the dollar for instance. Thinking about the possibility of having Facebook’s 2.4 billion members using Libra is frightening for Bruno Le Maire (french minister of economy and finance) whom fears an abuse of power thanks to the lack of regulation. Still, the IMF representatives and Le Maire himself know that they have to grant those crypto currencies a bit of freedom at some point which shows that they have taken into account the inevitable progress of crypto money and therefore have to accommodate their policies around this new way of consuming.
In the light of Facebook’s recent announce, China sped up the work on their own electronic currency, which rather than crypto money based on a computer, is stored on a medium. In fact, Beijing demonstrated back in 2017 their mistrustfulness towards crypto currencies saying that they are at the foundation of drug dealing, laundering and fraud. Beijing’s decision to create this money is explained by the threat represented by the bitcoin or the upcoming Libra on Yuan, whose stability is still a work in progress. Its launch is to be expected on November 11th, which would make it the very first virtual money owned by a federal entity.
Today, the European central bank and the G7 are still trying to figure out a way to supervise stable coins, that-is-to-say, a non volatile crypto currency which would not suffer so much from the market’s fluctuations and which would not fragilise the economy. Once worked out, the plan would allow currencies like Libra to safely exist. However, finding the right balance is not an easy task, especially with all the stakes…