London Daily

Focus on the big picture.
Friday, Jun 20, 2025

Facebook's Libra cryptocurrency: A threat to national economies? | Counting the Cost

With the likes of Amazon, Google's parent company Alphabet and Facebook becoming the world's most valuable listed companies, Big Data is quickly becoming the world's most important commodity. Meanwhile, regulators are scrambling to keep up with the changing environment.

The newest tech initiative - and one causing some concern - is Facebook's plan to introduce a new digital currency, Libra.

A cryptocurrency used by the social network's two billion users could effectively create a new world currency, perhaps even rivalling the dollar, yuan or euro.

However, given that Facebook has in the past abused data it has on billions of people, many in policy circles are opposing the cryptocurrency on the grounds that it is also a threat to national economies.

The loss of sovereignty is a huge concern for the likes of France's finance minister who raised concerns about a cryptocurrency with huge amounts of power but no governing rules or obligations. Issues of money laundering and funding of terrorism are also concerns for the US treasury secretary.

Although Facebook claims its influence on the Libra currency will be limited, tapping into the global payments market will make it extremely rich.

"Libra is going to be the first major cryptocurrency ... introduced by one major corporate or enterprise," says Naeem Aslam, chief markets analyst at Think Markets, comparing it to something like Bitcoin, which he says is decentralised and driven by the user community.

"Innovation is always important for our ecosystem. It always helps to make things more efficient, so yes it is of significant importance that we should see these innovative ideas, these new innovative technologies and currencies emerging," he tells Counting the Cost.

"But there shouldn't be a wild wild west when it comes to them. They should adhere to some regulation and make the entire regulatory framework even more better," he adds.

China: Currency manipulator?
There is a new battleground in the intensifying trade war between the world's two largest economies, China and the United States: currency valuation.

After China's government eased control over the yuan, allowing the currency to surpass the 7 per US dollar mark, the US responded by designating China a currency manipulator.

The downside for Chinese consumers is that they will pay more for imports. But with the yuan worth less, Chinese exports become cheaper and are able to compete better in the US and across the world - offsetting the US tariffs imposed on Chinese imports.

"China is trying to say we are not going to be bullied by the US, and a small reminder to the escalation of the trade war and what China can do," says Dan Wang, from the Economist Intelligence Unit. But, she adds that a further escalation is "highly unlikely".

Labelling China a currency manipulator is "more of a political statement" by the US, says Viraj Patel, an FX and global macro strategist with Arkera. But he is concerned that the US is willing to "bend the rules" to make that statement.

"It's more nuanced than just labelling a country of China's size a currency manipulator," he says. "I think the US has to take a step back ... The approach from the US is completely wrong. As soon as you apply tariffs, as soon as you take more of an aggressive stance on China, they become defensive."

Patel says the continuation and escalation of the trade "war" between the two powers could be quite damaging. "At some point, someone has to yield, but there is just no end in sight here," he says.

Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×