Finance Minister of India, Nirmala Sitharaman, reportedly stated that India would also be joining among others in remaining cautious concerning Facebook’s Libra.

Last week’s 2019 Annual Meetings of the International Monetary Fund and the World Bank in Washington, D.C. discussed the Libra project. Sitharaman had then informed the reporters from the New Indian Express that:

“On our side, the Reserve Bank Governor spoke about it during our turn to intervene. I got the sense that many countries were cautioning on rushing into this […]. Countries will have to show extreme caution much before anything is said or moved on this.” 

Sitharaman made a note of how the representatives of other nations were putting forth their views against the use of the term “stable currency” or “stablecoin.” They instead emphasized the token’s links to cryptocurrency.

As reported, Libra has been designated a stablecoin by Facebook — a type of digital asset designed to reduce price volatility. It was previously proposed to be backed by a bunch of national fiat currencies, which comprised of the U.S. dollar, euro, Japanese yen, British pound, and Singapore dollar.

Sitharaman also mentioned how the presentations at the annual meetings acknowledged the potential that virtual currencies had. They still without fail “spoke about the challenges together with talking about it as a necessary step forward. So everyone was stepping cautiously on it.” 

It is visible how citizens, crypto industry figures, governments, regulators, and central bankers worldwide are all being extremely cautious about the whole Libra project.

Yuan is not a part of Libra’s proposed reserve assets, and therefore, China has also ratcheted up its previous plans for a central bank digital currency in a bid to protect against what they think is a threat to its monetary sovereignty and legal currency status.  

The former governor of the People’s Bank of China mentioned how “people valuing Libra is inseparable from the global dollarization trend.”

According to New Indian Express, the digital currency issues might as well lead to worsening effects on the existing tensions between the global superpowers. It could accurately be the case when it comes to currency manipulation.

The United States and many others have had strong opinions against the issuance of global stablecoin, and that is primarily because of the troubles related risks to monetary sovereignty.

Facebook has thus been under constant pressure, which led to it revealing this week that it was considering using a multitude of stablecoins. These would, therefore, represent different national currencies instead of its original design. They even stated how this was not their original plan for the project.

In other news, it was reported last month that India has been witnessing signs of an was an expected brain drain, as the government contemplates over stark legislation that would term all domestic cryptocurrency investments as illegal. 

The ban would worsen an existing and much-contested prohibition by the Reserve Bank of India’s ban on domestic banks’ dealings with crypto-related businesses.