Analysts on Libra: "Regulatory headwinds could be hurricane force"

Analysts at Canaccord Genuity investment bank have high hopes for Facebook’s upcoming cryptocurrency. However, before its benefits can be seen, the analysts suggest regulators will hold nothing back in their scrutiny of the coin.

In a note to clients on Wednesday, analyst Michael Graham states that Facebook’s Libra seems like a good development for the crypto space, unbanked individuals, and to Facebook’s bottom line. While it may bring a degree of good with it, Graham says the coin must first receive regulatory approval, which may prove to be a tough fight.

“Regulatory headwinds could be hurricane force – on one level, governments should appreciate Libra for the boost it might bring to global commerce. On another level, Libra is by far the most credible crypto threat yet to government-sponsored currencies,” he wrote.

And it appears as if lawmakers are hesitant to accept the project. US Representative Maxine Waters released a statement hours after Libra was unveiled asking Facebook to temporarily halt its development of Libra and appear before Congress to provide testimony on their concerns.

European regulators are just as hesitant. French finance minister Brune Le Maire recent stated during a radio interview that there is no way Libra will be seen as a sovereign currency, stating that “it can’t and it must not happen.”