Sensing a multi-billion dollar opportunity to improve the cross-border payments system, Facebook is launching its own digital coin called ‘Libra‘ next year which is set to run into rough weather with several governments, including India, not treating cryptocurrencies as legal tender.

The move to launch ‘Libra’ comes at a time when Facebook is under intense pressure from regulators, shareholders and users to address privacy shortcomings.

libra

The social networking giant with over two billion users globally, is facing regulatory challenges as the Cambridge Analytica scandal has exposed its lapses of data privacy and security.

“While Facebook has a lofty vision for Libra, it already faces many rough challenges pertaining to privacy and regulation. India currently posits an excellent growth opportunity for fin-tech initiatives, primed from its booming digital payments push by the government,” said Prabhu Ram, Head, Industry Intelligence Group (IIG), CyberMedia Research.

“However, with ‘Libra’, it will potentially run into rough weather with the Reserve Bank of India (RBI) which currently does not view cryptocurrency favourably,” Ram told IANS.

Source: Economic Times

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