Global Financial Watchdogs And Lawmakers Seek More Details On Facebook’s Crypto Project
- Italy, France, the United States, and other countries need more information about the Libra asset to determine regulation.
- Switzerland’s central bank feels confident in the information provided by the whitepaper from Facebook.
The launch of Facebook’s new cryptocurrency – Libra – has been met with a lot of mixed reviews. The social media platform left many people in the dark for the last year, but the whitepaper for Libra was released a whole week ago. As regulators and other lawmakers got their hands on this explanation of the coin, many countries around the world have had the same idea – regulate it.
The French central bank has been vocal about the need for Facebook to obey the anti-money laundering rules already in place, considering how widespread tits use is. The Bank of France Governor Francois Villeroy de Galhau sees the need to improve cross-border payment remittance, but that there is no getting around the anti-money laundering regulations.
During an interview with L’Obs, a French weekly magazine, Villeroy stated, “The risks are increased by the anonymity that Libra users would have.”
The chief executive of the Financial Conduct Authority, Andrew Bailey, spoke with the British parliamentary committee about this launch. Bailey explained that Facebook is “not going to walk through authorization” without more information about Libra. The British financial regulator stated that gaining this information would be important to public policy.
At Italy’s central bank, the message is the same. Reuters reported that Domenico Gammaldi, who works at the Italian central bank as the head of market and payment system oversight, wants to see more information about the Libra project.
Apparently, the whitepaper doesn’t offer enough information, as Gammaldi said,
“I’ve read more than 200 pages of comments, and it’s very strange for me to give a personal opinion on 12 pages in the white paper.”
The United States is even hesitant to allow the use of Libra within their country, due to concerns with privacy as well. Before now, the central bankers have predominantly stayed out of the regulation of digital currency, because their popularity and use were too insignificant to really impact the financial system. However, Facebook has users around the world that apply their services, and their reach could end up being detrimental to traditional financial without the proper understanding.
Now, not all countries have had this opinion about the coin. In Switzerland, a central banker has already explained that the token will not find any problems within their jurisdiction. Reuters reported that the Swiss National Bank’s alternate member Thomas Moser feel confident in the coin, after Facebook explained that they would be complying with the rules set out. In fact, they have already reached out to some regulators to provide the same solace.
With the needs of these countries in mind, it is likely that the journey that Facebook is taking into payment remittance will be a subject of interest at the G20 summit, which is coming up this week in Japan. According to the Financial Stability Board (FSB), this topic could end up leading the regulators to take a look at cryptocurrency once more.