A Chinese politician Huang Qifan, the former mayor of Chongqing known as the maker of the city’s rapid economic rise, described Facebook’s Libra as a “delusional project that is destined to fail ” in his speech at the Bund Summit, a financial conference in Shanghai.
“If commercial companies can issue various currencies, this world will be in chaos. That is equivalent to returning to the primitive society. This is ridiculous, so I personally believe that Facebook’s Libra would never be a success,” Huang said.
Huang Qifan belives that any crypto currency is inappropriate as a rival of sovereign money. He added that digital coin approved by China’s central bank was far more likely to succeed.
As previously reported, Financial regulators have the reputation of been critical of the Facebook crypto, which may pose a threat to global financial stability in their view. The heads of the companies are concerned about how Facebook manages the private date of its users. France and Germany have pledged to block the cryptocurrency.
Visa, MasterCard, eBay, Stripe, Mercado Pago announced on October 11 they will no longer be part of Facebook’s libra cryptocurrency project. Lack of support from key payment systems can have serious consequences for the Facebook crypto project. Their withdrawal clouds the Libra’s future and calls into question its success.