Financial authorities in Thailand are holding talks with Facebook over its crypto coin named Libra. An executive at the Bank of Thailand unveiled this news earlier today. The official noted that the social firm had asked to discuss the project with the country’s financial entities.
Siritida Panomwan, the assistant governor for payment policy at the Bank of Thailand noted,
Facebook had requested discussions with the central bank, which is still reviewing the proposed schedule.
She further cited that,
The central bank has set up a team to study Facebook’s white paper on its proposed stable coin. The team comprises representatives from payment, foreign exchange rate and legal units.
According to Panomwan, officials at the central bank are paying close attention to Libra’s whitepaper.
Speaking about the risks associated with the coin, she asserted that,
Consumer benefits and risks incurred from the digital currency are the central bank’s main focus. We will also study the currency model, mechanism, security and consumer protection, in case any problems crop up.
Regulators Knew Libra Existed Before Facebook’s Official Announcement
The general public believes that financial agencies across the globe are in a state of panic after Facebook announced Libra. However, this is not the case.
David Marcus, the head of Calibra, Facebook’s crypto wallet made a statement that suggested otherwise. In his statement, Marcus unveiled that financial entities have been aware of Libra for Months.
We made the deliberate decision to announce the plans for Libra early. This was after an initial consultative phase with regulators, central banks, and other organizations from all around the world.
This news comes after Singapore had similar talks with the social firm in the past month. According to a report, the Monetary Authority of Singapore (MAS) sought to get more details on Libra through these talks. MAS managing director, Ravi Menon said that the central bank had concerns over how the coin would operate.
We need to understand exactly how it is going to work, what are the economics behind it, what are the safety protections, and what are the privacy issues, and so on,
Talking about how to classify Libra, Menon said,
Very often with these new developments, the key challenge is to figure out the nature of the beast.
He went on to talk about the benefits of Libra where he said the coin could help streamline the cross-border payments sector. Per Menon, this space is currently costly, inefficient, and risky.
Do you think Facebook’s talks with global banks will open a gateway that will make crypto mainstream? Let us know in the comments below.
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