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Libra Launch Could Make Facebook Unbanked
NEWS
October 22  |  2 min read

ING Bank: Facebook May Have Problems with Banks after Libra Launch

The COIN360 Editorial Team

Chief executive of financial giant ING Ralph Hamers warned that banks might refuse to provide banking services to Facebook upon the launch of its Libra coin if the project does not eradicate all regulatory concerns, reports The FInancial Times.

The ING bank executive further explained that banks, acting as “gatekeepers to the financial system,” might take measures and refuse to deal with a client if the client is engaging in suspicious activities that are opening doors to financial crime.

On the other hand, Hamers shared that the project might be a “good initiative to learn with.” In the meantime, the bank, as a highly regulated institution, prefers to employ the risk-averse strategy of observing the company’s dialogue with regulators, the next round of which will come next week with Zuckerberg’s presentation in Congress.

A Facebook spokesperson confirmed that Libra will not be launched until the appropriate approvals are received from regulators. As COIN360 previously reported, David Marcus, co-founder and head of Libra, shared that the project could even consider using a series of stablecoins pegged to national currencies instead of following the previous plan of backing Libra with a basket of fiat currencies.