Facebook's Libra faces skeptical government in Asia’s third-largest economy


Meanwhile, Facebook also revealed that it has no plans to enter the Indian market with its proposed cryptocurrency and the accompanying Calibra digital wallet.

He adds, "If the digital currency is closely associated with the US dollar, it could create a scenario under which sovereign currencies would coexist with USA dollar-centric digital currencies".

"Design of the Facebook currency has not been fully explained", Economic Affairs Secretary Subhash Garg said in an interview in New Delhi on Saturday.

Wang noted that the PBOC has been continuing its studies of cryptocurrency technology, in hopes of creating a central bank digital currency. India's top court, in an interim order past year, endorsed the Reserve Bank's April 2018 ban after cryptocurrency exchange operators challenged the move. In July 2018, the Supreme Court of India endorsed the ban, pending further review.

According to Libra.org, Libra Coin is created with a mission of launching a simple global currency and financial infrastructure that empowers billions of people.

"If Libra is widely used for payments, in particular, cross-border payments, will it be able to function as a currency and, accordingly, will have a big impact on monetary policy, financial stability and the worldwide monetary system?"

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The PBOC is paying "high attention" to Libra, according to Wang Xin, director of the bank's research bureau.

Over the past few years Beijing has taken a series of regulatory measures to crack down on activities related to cryptocurrencies, primarily due to concerns over financial risks associated with such transactions.

The latest skepticism to Facebook Inc.'s plans for its new cryptocurrency called Libra comes from India as Asia's third-largest economy is not keen on allowing the digital currency in the country.

The chairperson the HFSC already asked Facebook to halt its developments of Libra over concerns of privacy of the platform's users.

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