The Facebook Libra Project is facing rejections from many quarters. The latest is from India, the country that has most Facebook users.
Indian’s apex bank, the Reserve Bank of India (RBI) has never been a fan of cryptocurrency. With the tight laws against cryptocurrency, Facebook has decided it would not launch its Libra Project in India.
Off Limits India
RBI has issued several warnings to cryptocurrency users since 2013 of its illegality in India. Nevertheless, the law that forbids cryptocurrency use was enacted last year even as the crypto community in the country battled the RBI up to the Supreme Court.
While many users are currently considered to be breaking the law, the Indian government is formulating stricter laws that would send users to prison.
According to The Indian Express, “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019” the draft being prepared would make holding and transmitting of digital assets an offense that is no bailable. Furthermore, if convicted, the holder could face up to 10 years jail term.
An official statement from Facebook said that:
“There are no plans to offer Calibra in India. As you may know, there are local restrictions within India that made a launch of Calibra not possible at this time.”
The project is rumored to set off in 2020, but there has been restrictions by US Lawmakers. In addition to this, The Chinese Government wants the project thrown out.
Built in Switzerland
According to Facebook, The new cryptocurrency blockchain will be managed in Switzerland. With so much instability in cryptocurrency, it is said that Libra will not be volatile. The wallet of the Libra coin is called Calibra and will be managed by an affiliate company to Facebook.
After getting wind of this new cryptocurrency, Subhash Garg, Secretary of Economic Matters in India told Bloomberg that Facebook’s Libra “would be a private cryptocurrency and that’s not something we have been comfortable with”
Facebook has been testing the viability of cash transactions through Whatsapp in India with the resistance to the Libra. It is obvious that the company is determined to get its share of the crypto market and not willing to be deterreed by the oppositions to the project.