Lubin: Facebook shouldn't lead Libra / Libra is like email / EU reaffirms move to block Libra

Inside Libra presented by The Ascent.

Presented by Subscribe | View in browser 1. The co-founder of Ethereum believes Facebook shouldn't be leading the Libra project. Speaking on CNBC's "Squawk Box," Joseph Lubin said that he's a fan of projects like Libra. However, he went on to say that given the concerns surrounding the social media platform, he doesn't think it "should be driving" the project. In Lubin's opinion, Libra "suffers from its greatest asset," namely Facebook. If Libra is to launch, Lubin thinks the stablecoin should first be done in "small-and-medium sized nations" before turning its attention to Europe and America. –CNBC       2. Kevin Weil, vice president of product at Facebook's Calibra digital wallet unit, has said that Libra is similar to email rather than PayPal. Speaking at the Web Summit yesterday in Lisbon, Weil stated that the basic principle of email, interoperability, will be the main concept of the stablecoin project. Talking about this more, he went on to say that when two people decide to send an email to each other, they don't have to pick an email provider to use. The same goes for a browser depending on which website a person uses. These things are protocols, Weil argues, "and as long as you build to the protocol everything's interoperable." –COINTELEGRAPH       A MESSAGE FROM THE ASCENT 0% APR is 100% an insane deal If you've been dreaming of a "one-card wallet", it's time to wake up and get your hands on this one that offers 0% intro APR for more than a year, and the highest cash back rate we've come across. Oh yeah, that includes double cash back in the first year, and no annual fee. Click to learn more.  3. The European Union has reaffirmed a potential move to block Facebook's Libra. A draft document is to be discussed on Friday by EU finance ministers, which will look at risky cryptocurrencies including Libra. According to a report, the document puts forward the possibility of banning global stablecoins. All options will be on the table for the ministers, including steps to "take measures preventing the development of projects that would create unmanageable or excessive risks." The report goes on to state that these risks increase when stablecoins reach around 2.4 billion users worldwide, as would be the case for Libra. –EURACTIV       4. Global securities watchdog IOSCO has said that Libra could fall under some existing securities rules to help realize its benefits. The watchdog, which is made up of regulators worldwide, including Europe, Japan, and the United States, has declared that stablecoins can offer benefits as well as risks. According to Ashley Alder, chair of the IOSCO, "so-called 'stablecoins' can include features that are typical of regulated securities." Alder went on to say that it was "important" for those seeking to launch stablecoins to be open and constructive where they are trying to operate. –REUTERS Why it Matters: The tone is opposite to many global regulators and policymakers who have said in the past that Libra should be stopped while Germany and France have called for it be banned.       5. Halsey Minor, founder of tech news site CNET, has said that Facebook is "tone-deaf" as to how the finance system works with its Libra project. Minor, speaking at the Web Summit technology conference, said that the social media's stablecoin plans illustrates that it's ill-equipped to take on the financial world. In his opinion, companies such as Facebook and Amazon are "monopolies" that are having an "extraordinary gravitational effect" on the economy. –CNBC       6. In this opinion piece, writers Saule Omarova and Graham Steele have said that there is still a lot that isn't known about Libra. According to the two, even though Facebook's CEO Mark Zuckerberg spent five hours in front of the U.S. House Financial Services Committee last month, not much was learnt about Facebook's plans for its Libra stablecoin. The two go on to say that Libra is "not simply a money transfer scheme" and once launched it will create an "ecosystem of financial services and service providers" such as asset managers, brokers, custodians, and exchanges. –THE BUSINESS TIMES       7. The Office of the Australian Information Commissioner (OAIC) may press Facebook to reveal details about its plans about its Libra stablecoin after failing to answer the watchdogs' concerns. As a result, eight of Australia's regulators have agreed to come together to use their powers to force the company to come forward with more information following a meeting with Facebook last month. The Australian Securities and Investments Commission (ASIC) has said that Libra "poses many risks and threats, including the proliferation of scams based on Libra via mobile apps." –REUTERS       8. Daniel Daianu, the president of the Fiscal Council, has said that Libra is "very dangerous." In his opinion, this is the case because many there is the need for "parallel markets, [and] the disappearance of central banks." Not only would it target billions of users, it "would almost inevitably fracture the monetary system and central banks would lose their effectiveness," he said. –BUSINESS REVIEW       This newsletter was written and curated by Rebecca Campbell. She has been writing and reporting on various industries for the past 10 years, more specifically tech in the last three. Connect with her on Twitter.         Ad For those who dream of a one-card wallet. Learn more here.

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