The Institute for Economic Research (Ifo), one of Germany’s leading economic and think-tank organizations, said that Facebook’s own crypto currency, Libra, could bring more financial autonomy to developing countries.
Ifo has published a research report on the plan and impact of Facebook’s own cryptopar Libra. “In most developing countries, the poorest people do not have access to the financial system. Very high interest rates or international banks when borrowing. they have to pay high fees for their transfers. Ifo researchers Stefan Eichler and Marcel Thum research, “Libra can bring more financial autonomy to developing countries,” the statement said.
In the report, recalling that the current monetary system is controlled by the state, “Libra may create difficulties for this sovereign monetary system. That is why governments, central banks and lawmakers are skeptical of the Libra. If the use of libra becomes widespread, the use of official local currencies may gradually decrease. The effect of domestic monetary policy is reduced. In addition, inflation will become more difficult to control and will tend to higher volatility.
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