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Fabcebook's Project Libra Potentially A Shadow Banking System According To Major U.S. Banks
Summary: The Federal Advisory Council (FAC) fears that Facebook’s cryptocurrency project Libra will potentially create a “shadow banking” system, according to CoinTelegraph. According to Bloomberg the Federal Reserve has been in discussions with the nation’s largest banks about their thoughts on Libra. The banks have made it clear their feelings on the project are negative. The ...
The Federal Advisory Council (FAC) fears that Facebook’s cryptocurrency project Libra will potentially create a “shadow banking” system, according to CoinTelegraph.
According to Bloomberg the Federal Reserve has been in discussions with the nation’s largest banks about their thoughts on Libra. The banks have made it clear their feelings on the project are negative. The banks highlighted the risks of potential decline in demand-deposit accounts and bank payment volumes.
The banks have made it clear that they feel that stablecoin projects such as Libra will pose a challenge to the bank business model which is built on privacy. It was also mentioned during the quarterly meeting with the FAC, that with the massive user base of around 170 million people who are active Facebook users could have the potential to create a digital monetary ecosystem outside of sanctioned financial markets, also known as a “Shadow banking” system
Tags: Bank,Banks,Cryptocurency,Facebook,Libra,shadow banking
Link: Fabcebook's Project Libra Potentially A Shadow Banking System According To Major U.S. Banks [Copy]
