Bank Of England Spells Out UK’s Requirements for the Libra Coin Launch
United Kingdom’s central bank, Bank of England, has announced a raft of rules that Facebook’s Libra crypto must adhere to if it wishes to launch in UK.
In its October Financial Policy and Summary released by the bank’s Financial Policy Committee, BoE stated that it discussed innovative explorations within the financial and payment sector. As per the release, the bank noted that Libra has the capability of becoming ‘a systemically important payment system’ in the future.
According to the FPC, a system like Libra should comply with the highest standards of resilience and fall under the relevant supervisory oversight. In addition, the FPC called on regulators to come up with terms of engagements for various innovative payment systems before they can be introduced in the market.
A key aspect of the policy summary is that BoE stated it would require access to allow for monitoring of the payment chain information as a key condition. However, the FPC urged regulators to utilize their powers accordingly as per the published principles.
The document also explained that the Libra Association, as well as the Libra Reserve of different fiat monies, are of high importance. The FPC continued to explain that the platform participants, wallet providers as well as validators will also need to be regulated and scrutinized thoroughly.
CoinDesk reports a similar form of measures and conditions were discussed by Olaf Scholz who was earlier this week nominated as the EU Commission’s finance minister. During the discussion, Scholz stated that EU should come up with a regulatory framework for such payment networks like Libra.
The Libra project has come under intense scrutiny and skepticism with both German and French finance ministers saying that Libra cryptocurrency should never be allowed to launch on European soil since it will undermine the sovereignty of their nations, Cointelegraph reports. The two ministers argued that it was the work of the government to issue currency and that mandate should never be left on private entities.
The UK seems to be open to a discussion on the prospect of Libra being launched in the country as it positions itself as Europe’s financial hub in the wake of Brexit.