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Central banks grill Facebook over cryptocurrency
A Finextra member

A Finextra member

  According the Libra white paper all Libras are backed with fiat currencies that are placed in deposit at the moment someone buys Libra coins. The Libra foundation needs to take care that these deposits are held in custody in such a way that the market risk is as minimal as possible. This means spread across accounts held with different banks or other save-haven assets. The foundation needs to take care that there is enough liquidity available when Libra holders want to exchange them into fiat currency again. As financial oversight authority you rightfully may be concerned about this, but I do not see how this is much difference than people holding money on a PayPal account. If the Libra foundation would apply for a banking license in every country of which the currency participates in the Libra, would that change their mind? In the EU a Euro Libra would fall officially under eMoney institution legislation which makes it possible that non-banks are issuing eMoney that is backed up with deposits.
Banks fear Big Tech competition in booming non-cash payments market
A Finextra member

A Finextra member

  Facebook, Google, Apple and Amazon does not have a measurable impact to the growing nations listed in this article. The 2/3 believing Facebook matters may need to talk to the other 1/3 knowing Chinese payment providers AliPay and WeChat are the actual power players of non-cash global expansion across the world.