When the time comes for the ultimate decision, either cryptocurrency or fiat must stoop to form the new status quo for finance. Facebook’s entry into the crypto space stirred the pot, bringing focus on crypto’s role within the existing market regulations. That being said, Libra’s biggest geographical threat remains European Union (EU), primarily due to its stringent GDPR requirement of users’ “right to be forgotten” that empowers citizens to remove their data from a record.
As this contradicts blockchain technology’s immutable nature, numerous experts have speculated about Libra’s intention to establish a workaround by using it Swiss-hosted private Libra blockchain. Although the participation of nonfinancial companies in the crypto-market signals a positive step toward mass adoption, KPMG’s attorney Dennis Hillemann quoted,
“At first view, some GDPR provisions seem in direct conflict with the fundamentals of blockchain technology, and may even be intrinsically incompatible with what the new GDPR rules seek to uphold.”
The impending regulations also imply that international businesses that make use of the Libra network will also no longer maintain compliance with the European businesses. Furthermore, it also indicates how such regulations, while drafted with customer protection in mind, cripples the large-scale adoption of crypto in the EU.
In addition, Facebook’s unpopular history with privacy and data protection also posed as one of the main factors for the general notion of Libra’s failure in adoption. It is also important to note that while Internet has been able to breach difficult-to-reach geographies over time, banking still stands as one of the primary challenges for the majority of the public worldwide.
As the recent U.S. court order sought to stop all Libra-related operations, technologists and industry experts believe Facebook’s Calibra initiative will serve as the gap between the blockchain and government regulations.