Banks of the US may prefer to stay onside from Facebook’s cryptocurrency.
The Libra Association is making conversations with various lenders all over the world for joining their ranks, but the banks are still staying away from this idea after being a witness to a costumers' reaction to Apple Pay and regulatory scrutiny of digital currencies.
In a phone interview to Bloomberg, David Donovan, the leader of Publicis Sapient, said that is Libra becomes massively adopted, banks would like to work with it. There’s a serious business decision that banks need to make.
When Mark Zuckerberg announced the association’s launch on June 18, there were 27 various companies from different fields, but banks were absent. Facebook has a 2.4 billion active users and this fact is very hard to ignore for banks, so Michael Corbat from Citigroup Inc. said that they will join Libra if they get a suggestion.
Banks are also concerned about the law. There were many cases when startups didn’t match to regulations of the country. So if they start cooperating, both sides have to take responsibility for following the laws.
Facebook’s Libra has already grabbed the attention of regulatory institutions. Maybe after promised hearings, the government will count Libra as a matching-to-laws cryptocurrency, so the banks will start cooperation with the company.