Contact Us

+350 20079000

This data will only be used by Hassans for processing your query and for no other purpose. View our privacy policy
| 1 minute read

The Libra Effect

The mounting pressure that Libra has put on Central Banks across the globe has become increasingly evident.

Governments and Central Banks in the US and Europe scrambled to pressure Facebook to desist from launching Libra shortly after it was first announced last year. However, it seems that the direction of pressure has since reversed with Central Banks realising that they need to quickly adapt to the rise of cryptocurrencies and adopt Central Bank Digital Currencies (CBDCs) using distributed ledger or blockchain technology if they are to remain relevant and remain ahead of private tech giants issuing their own stable coins (cryptocurrencies backed by fiat currencies).

China and Russia have long since announced their plans to issue CBDCs. Sweden recently announced its plans to pilot an e-Krona CBDC. The Bahamas concluded their CBDC pilot last year. A host of other Central Banks in developed and developing nations (including the US Federal Reserve) have also publicly supported such considerations and initiatives.

The announcement of Libra rightly raised concerns when it was first announced given the credibility deficit suffered by Facebook following its well publicised data privacy breaches, but it has also been acknowledged that the launch of Libra will heighten the awareness and adoption of cryptocurrencies and smoothen international payment rails, helping the unbanked with international money remittances and enhancing the efficiency and cost-effectiveness of money remittances.

This will remain a fascinating area for everyone involved in finance to monitor the development of closely in the coming months. An interesting and insightful report recently published jointly by IBM and by OMFIF on CBDCs can be found here.

The Bank of England’s chief cashier has signalled support for an official cryptocurrency, arguing it is “crucial” to central banks to consider stepping in before tech giants dominate.

Top-ranked in all practice areas in Legal 500 EMEA 2024

Hassans is pleased to announce that it has once again achieved top tier rankings in all areas covered by Legal 500 EMEA for Gibraltar....

Posted on
Read more

Latest Insights

Upcoming compulsory pensions deadlines for Medium, Small and Micro companies

As many employers will be aware, following the enactment of the Private Sector Pensions Act 2019 (“the Act”), which came into force in...

Posted on
Read more

Ethical Gambling Forum 2024

The Ethical Gambling Forum 2024 was held at the Sunborn Hotel, Gibraltar, last week attended by gambling operators and service providers...

Posted on
Read more

Insurance and Reinsurance Comparative Guide

Hassans' Head of Insurance Yvonne Chu has contributed to Lexology's most recent Panoramic Guide relating to Insurance and Reinsurance. ...

Posted on
Read more