Banks May Stop Working With Facebook


October 22, 2019 8:19 pm

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Ralph Hamers, CEO ING said that Banks might stop working with Facebook if it launches its Libra stablecoin. According to the report, the CEO explained that institutions like ING have to guard the financial system to prevent criminal activity due to its concerns over Libra’s potential for illegal use may result in a response from the banks.

He stated:

“We can take measures and exit the client, or not accept the client, so those are discussions you would have to have.”

The money laundering concerns are increased by the fear that Libra may allow criminals to quickly move funds across national borders without any oversight. However, Facebook announced that it is not going to release the cryptocurrency until the firm has not eased the regulator’s concerns. 

Hamers stated:

“We are such a large, regulated institution that you don’t want to risk anything. […] We’ve said we’ll take a look and see how this develops.”

Recently, Nirmala Sitharaman, India Finance Minister said that like many countries, India is also showing a high degree of caution regarding Facebook’s Libra. During an Annual Meetings of the International Monetary Fund and the World Bank in Washington, D.C. that included a discussion of the Libra project, Sitharaman expressed her views on allowing Facebook’s Cryptocurrency in the country.

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