Tim Cook, Apple’s CEO has just said that he does not support setting up the Libra coin or alt coins in general in comments made to Reuters. “No. I really think that a currency should stay in the hands of countries. I’m not comfortable with the idea of a private group setting up a competing currency,” he said.
This adds to the recent scrutiny Facebook coin has faced from regulators as well as major financial payment providers, including Visa, Mastercard and Paypal. As we previously stated, there are several factors within the Libra framework that are alarming to regulators and market participants – the virtually unchecked way the coin plans to operate, without any peg to any major currencies or significant oversight, at least as it has been proposed up until now.
With Facebook’s political and economic might, it will be interesting to see if Facebook halts or pauses efforts to roll out the coin or will use its influence to try and convince everyone, especially regulators and governments that the coin will operate with mechanisms in place to alleviate the majority of concerns.
This may prove to be quite difficult at this time, given the attention “Big Tech” is getting from lawmakers and presidential candidates in the United States, many of whom would like to see Facebook’s properties, such as WhatsApp and Instagram sold off in order to increase market competition and allow regulators to keep up.