“Banks will refuse to serve Facebook after the launch of Libra”

Ralph Hamers, director general of ING, the Dutch financial group, believes that banks can completely stop serving Facebook if the company launches stablecoin Libra.

Hamers explained that financial institutions have strict requirements for such projects in order to protect the global financial system from criminal activity. Banks in various countries are concerned that Libra could be used for illegal purposes – money laundering and terrorist financing.

According to Hamers, many banks are ready to take tough measures: either not start working with customers such as Facebook, or completely stop servicing their accounts. Banks are worried that fraudsters will be able to quickly transfer funds abroad in Libra cryptocurrency without external control. At the same time, Facebook representatives assure that the launch of Libra will occur only after the settlement of all legal issues with regulators.

“Such large and regulated organizations as ING evaluate even the smallest risks so as not to spoil their reputation. At the moment, we are only ready to observe the development of Libra from the outside, ”says the leadership of ING Corporation.

As for other banks, they are set up for the Libra project even more biased. For example, last week JP Morgan Chase Banking CEO Jamie Dimon called Facebook stablecoin an interesting idea that “will never be realized.”

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Several large companies have already refused to participate in the project: PayPal, Visa, Mastercard, Stripe, eBay, Mercado Pago and Booking. In addition, according to a survey of residents of Germany, 73% of Germans are not going to use Libra, trusting only state currencies.