The Rise of the Corporate-Issued Cryptocurrency

Abstract

This paper explores the response to the Libra project by U.S. regulators and identifies issues that need to be addressed if a corporate-issued cryptocurrency like the Libra is introduced into the marketplace. Part I will provide context for the regulatory challenges facing the Libra and explore the idea of privatizing money. Part II will consider proposed approaches to regulating the Libra in the United States, chiefly the “Keep Big Tech Out of Finance Act” and examine the effect of moratoriums on innovation. Part III will discuss whether Facebook’s involvement in the Libra project is the reason for the ire it has drawn from regulators. Part IV will examine regulatory challenges facing the Libra and identify questions that must be answered to address the issuance of cryptocurrencies by corporations.

Keywords: Cryptocurrency, Libra, FinTech, Regulation, Privatization, Monetary Policy