Banks May Cut Tie with Facebook if Libra is Launched

[CryptoBry]

Banks may be bound to stop working with social media giant Facebook if the firm launches its Libra stablecoin, according to ING CEO Ralph Hamers. Bank can choose to “not accept the client”

Financial news outlet Financial Times reported on Hamers’ remarks on Oct. 22. Per the report, he explained that institutions like ING have to guard the financial system to prevent criminal activity. Because of this, concerns over Libra’s potential for illegal use may result in a response from the banks:

“We can take measures and exit the client, or not accept the client, so those are discussions you would have to have.” The money laundering concerns are spurred by the fear that Libra may allow criminals to quickly move funds across national borders without any oversight.

https://www.allurnews.com/en-us/2019/10/22/banks-may-cut-ties-with-facebook-if-libra-is-launched-ing-ceo/Read more here...



Actually this is just a concern of one bank and may not necessarily reflects that of the other nor can be the stand of the whole banking industry in regard to Facebook's Libra. However, this sentiment can spread to other big banks and Facebook can have a little problem here. Now, I am thinking will this concern not lead to Mark Zuckerberg create his own real bank discreetly? The idea must be preposterous but knowing Mark, who knows...

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[avikz]

That's loss for ING only, if they can risk a multi billion dollar client! I don't know whether Facebook will be able to launch Libra or not, but if ING decides not to accept Facebook as a client, Facebook is not going to be a loser!

Come on! It's a multi billion dollar company. Other big players will be more than happy to accept Facebook as a client! Being too defensive usually ruins major opportunities! That's going to be the case for ING!

[Pearls Before Swine]

ING?  Weren't they involved in the Enron scandal or one of the other ones in the past 20 years?  Screw them.

Facebook started with nothing but venture capitalists and a slick website, and I don't know what their finances are like but I'm fairly sure they could survive without ING and some other banks. 

This all stinks of politics to me.  I have no plans to buy any Libra, but if it's pissing big banking off that the coin might be launched, I'm all for it.  Banks have far too much power and influence, and it's time something shook their foundations.  Libra might not be able to do that, but at least it's potential is putting some fear into the banking system.

[CjMapope]

you would think Facebook would have thought this all through, as this is standard practice with crypto (gov paranoia of the service allowing for laundering)
its why KYC has been pushed so hard last year or two
Mark really seems to have rushed this, just trying to cash in asap i suppose
its pretty much blown up in their face at this point tho

[freigeist]

you would think Facebook would have thought this all through, as this is standard practice with crypto (gov paranoia of the service allowing for laundering)
its why KYC has been pushed so hard last year or two
Mark really seems to have rushed this, just trying to cash in asap i suppose
its pretty much blown up in their face at this point tho

Without KYC we are all the same!
With KYC some have power above others!

[mu_enrico]

With big players like PayPal, Visa, Mastercard, abandon the sinking ship, there is zero chance (IMO) Libra can be realized. Only 19 from 26 members still support this project, and I think it will decrease as time passed.

Read more: https://www.ft.com/content/68952c0c-f41c-11e9-b018-3ef8794b17c6

The government won't let corporations threat their monetary policy. Plus with FATF and MLD5, it's dangerous if people trust their ID to Facebook and its allies.

[o48o]

Even when i am not a fan of Libra, this ultimatum makes me bullish on cryptos in overall. This just means that banks recognize the threat of disruptive technologies. It almost feels that there will be a war about the definition and the monopoly of money in the future. Banks feel threatened, that's for sure, but i am starting to wonder how long they even have time when they go risking clients of this level just to claim their dominance. Future will be a rough battle for them when they decide to try and go after decentralized ones.

[nreal]

Major financial and payment companies like VISA and Master Card have left Libra, which will make it difficult for Facebook because they do not have much experience in this area, so even if Facebook established a their own bank to support Libra, it can not be better than Libra with the participation of VISA, Master Card.

[Aabcde]

Banks are afraid that his services will no longer be useful if everyone uses crypto. Safer, full control and inexpensive, no monthly fees.
I think with the KYC in Libra, surely things like money laundering can be minimized. I think this is just the sentiment of the banks so as not to be rivaled and the business torn apart.

[magneto]

Sounds like some scare campaign but this actually may happen.

Banks actually have leverage here. Facebook's Libra is centralised, unlike bitcoin being decentralised. As a result, there is a central point of attack for anyone that is trying to censor their network, in a multitude of ways including banks ceasing co-operation.

Central banks especially are very wary of anything that threatens their ability to implement monetary policy, and I'd say that they see Libra as more of an enemy than even BTC right now.

[Bttzed03]

This bank ceo trying to talk big now that Libra is being pushed back but the Facebook board won't lose sleep over that warning

They are just using this "criminal activity" to mask their real intention which is to protect their personal interest and business,