Fed: Libra faces 'legal challenges' / Facebook's Libra 'miscalculation' / ECB to assess need for CBDC

Inside Libra presented by EquityMultiple.

Presented by Subscribe | View in browser 1. Lael Brainard, a member of the U.S. Federal Reserve's Board of Governors, has said Facebook's Libra project faces a "core set of legal and regulatory challenges." According to Brainard, Facebook's idea of a stablecoin remains unproven, along with an unclear set of rights for consumers. "Without requisite safeguards, stablecoin networks at global scale may put consumers at risk," she said. She did concede, however, that there are advantages to the technology with lowering costs and increasing the speed of transmitting money, but, she added, there are "advantages associated with current arrangements," in particular with the issuance of physical money. REUTERS       2. Nic Carter, co-founder and board chair of CoinMetrics, has said in an interview that Facebook made a miscalculation with Libra. Carter stated that the social media platform had the idea that they could create something that would result in an international currency through their platform. As can be seen, though, Congress hasn't been open to this idea. In Carter's opinion, Facebook should have taken the "patriotic route" and said that the Libra Reserve would be full of U.S. dollars and only 10 percent of Swiss francs. "But they didn't do that. So, there are consequences," he said. –COIN DESK       A MESSAGE FROM EQUITYMULTIPLE Making Real Estate Investing Simple, Accessible & Transparent. Build a Stronger Portfolio. Looking to diversify beyond stocks & bonds? EquityMultiple provides you access to the kinds of commercial real estate investments that were once open only to institutional investors. Start with just $10k & diversify across markets, property types, & risk/return profiles. Build a better portfolio. Invest Today   3. The European Central Bank (ECB) is to assess the appropriateness of issuing its own central bank digital currency (CBDC) in the new year as Facebook continues to work on its Libra project. The last time the ECB conducted a review was back in 2003; however, since then the world has undergone a digital shift. Christine Lagarde, president of the ECB, has said that the review will take place in January and conclude at the end of 2020. –EURACTIV       4. Stephen S. Poloz, governor of the Bank of Canada, has said that while innovations such as Bitcoin and Libra have global potential they also bring risks to the financial system. In his opinion, these risks first need to be understood and appropriate regulations should be applied to them. He did go on to add, though, that physical banknotes authorized by the government would never be replaced, stating that they "will probably always be around to some degree." –AMB CRYPTO       5. R3 chief David Rutter has indicated that Facebook's Libra will push regulators to take a stand. In his opinion, the social media's plans will "accelerate thinking at central banks and regulators all around," which he sees as a positive thing for the community. –FORKAST       6. The Reserve Bank of Australia (RBA) has said that regulators are struggling with how to regulate Libra. However, the RBA has stated that even if it doesn't go ahead, something similar will be launched in its place. The RBA is of the opinion that Libra will create exchange rate volatility. –AUSTRALIAN FINANCIAL REVIEW       7. This piece questions whether the announcement of Libra has changed the crypto outlook. Despite criticism for the coin, there has been increased interest in the digital space with the likes of China announcing that they are developing their own central bank digital currency (CBDC). –RACONTEUR       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 Invest in Exclusive, Expertly Vetted Real Estate. From Anywhere. Start with just $10k.

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