ING Head Warns Banks Could Drop Facebook Over Its Libra Cryptocurrency

Michael LaVere
  • ING Group CEO Ralph Hamers said banks could cut ties with Facebook over libra.
  • The banking executive cited libra's potential use in illegal activity as a matter of concern for banks. 

The head of ING Group has issued a warning to Facebook, saying that banks could drop the social media platform over the regulatory storm being caused by libra

Ralph Hamers, Chief Executive Officer of ING Group, cautioned that banks could be forced to cut ties with Facebook due to the blowback over its digital currency libra. Hamers referred to banks such as ING as a “gatekeeper to the financial system,” and said it would be difficult to support Facebook if libra paved the way for criminal enterprise or money-laundering. 

Hamer said of his bank’s relationship with Facebook,

We can take measures and exit the client, or not accept the client, so those are discussions you would have to have.

He added that the launch of libra would inevitably make it more difficult for banks to continue offering services to the parent company Facebook.

Hamer’s position now adds even greater pressure to the social media’s digital currency, which the G7 report last week recommended should be postponed until Facebook can demonstrate that libra is safe and secure. 

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