Philip Lowe, the Governor of the Reserver Bank of Australia, has followed Facebook co-founder Chris Hughes in warning against Facebook’s native crypto project Libra. However, his warning was on a different note. While Hughes had talked about the possibility of Libra disrupting sovereign economies in the developing countries, Lowe said that Libra might fail to achieve mainstream adoption in the near future.
According to a Bloomberg report, he said:
“There’s a lot of water under the bridge before Facebook’s proposal becomes something we’re using all the time […] There are a lot of regulatory issues that need to be addressed and they’ve got to make sure there’s a solid business case, so we’ve got to be careful before we jump to conclusions.”
Earlier, in 2017, Lowe had also criticized pioneering cryptocurrency Bitcoin for having risen in value because of an alleged “speculative mania”. He had also opined that Bitcoin was more likely to attract use by criminals than law-abiding citizens and investors. However, his prediction has not been proven to be too accurate so far.
In general, he believes that cryptocurrencies are not too appropriate for the Australian setting. Apparently,since the existing electronic payment system already works so well in the country, crypto is unlikely to be too successful. Speaking on the topic, he commented:
“I have long thought that a kind of cryptocurrency would not take off in Australia because we already have a very, very efficient electronic payments system that allows anyone of us to make bank payments to another person in five seconds just knowing their mobile phone number.”
Lowe’s comments about Libra seem to be the latest addition to a slew of other discouraging and often disparaging remarks about the hyped up crypto project. While these comments cannot be disregarded altogether, it seems quite likely that Libra will attain a reasonable degree of success, especially considering the influential backers it has already bagged.