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Facebook's Libra plans unravel

The world is waking up to the dangers Mark Zuckerberg's new digital currency would pose to economic and financial stability.

Barry Eichengreen

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Plans for Facebook’s proposed “stablecoin”, Libra, appear to be unravelling with the withdrawal of PayPal, Visa, Mastercard, Stripe, eBay, and Mercado Pago as potential sponsors. This is hardly surprising, given growing awareness of Libra’s potential adverse consequences.

If it offers anonymity to its users, Libra will become a platform for tax evasion, money laundering, and terrorist finance. If, on the other hand, its privacy protections are lax, Libra will give Facebook access to users’ most intimate financial details.

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    Original URL: https://www.afr.com/companies/financial-services/facebook-s-libra-plans-unravel-20191015-p530qh