Libra Cryptocurrency Opposed by BlackRock CEO on CNBC

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After the hearing of Libra Cryptocurrency, people are expressing their views in different ways around the world. While some are in favor of Libra Cryptocurrency and some are against it. Larry Fink opposed Libra while Jens Wiedmann spoke in favour of Libra Cryptocurrency.

The CEO of the American global investment management corporation, Larry Fink, alleged that he does not consider Facebook’s Libra as a cryptocurrency.

In an interview today with CNBC Squawk Box, Larry Fink while discussing the global economy, expressed that there is no need of creating a new currency. But there is a real need of democratising of all the foreign currencies that are used in cross-border transactions and to decrease the fees of the interchange.

He pointed out the real-world problems that exist in cross-border transactions. He explained how the organizations overcharge the people who send money around the world through the organizations and usually charge five to ten percent. And to decrease this interchange fees, people do not need a new currency such as Libra or Bitcoin but the technology that could calibrate all the currencies.

He said, “I actually believe that the idea about Libra — I don’t think we need to create a new currency, but the technology to instantaneously calibrate all the currencies. That should be done.” He then added, “You don’t need a Libra. You have computers that can monetize and calibrate euro to dollar instantaneously for a couple of basis points.”

The head of Germany’s central bank Jens Weidmann spoke in favor of Facebook’s Libra during a recent G7 event. Weidmann argued in the last G7 meeting that regulators around the globe should not suppress the Libra project at its root and that cryptocurrencies such as Libra can be attractive to consumers in case if they deliver what they promise. He further requested the global community to give some time for innovative initiatives such as Libra for the development and to clarify all the details instead of cutting it out at infant level without gaining the complete knowledge of it. However, his statements do contradict with his previous statements where he expressed that the cryptocurrencies would cause destabilization of the financial system.

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