Singapore’s MAS Gets Inquisitive About Facebook’s Libra Cryptocurrency Project
- Singapore’s MAS wants to learn about Facebook to be able to establish a regulatory framework
- Different regulators around the world have already asked for more information to Facebook
The central bank of Singapore, the Monetary Authority of Singapore (MAS), wants to learn more about Facebook’s Libra cryptocurrency project.
According to a recent report released by Bloomberg, Ravi Menon, Managing Director of the Monetary Authority of Singapore, explained that the institution has been talking with the social media network regarding Libra and how it is expected to work.
Monetary Authority of Singapore Wants To Know More About Libra
Facebook has recently released the project of a new cryptocurrency called Libra that is expected to help individuals perform transactions and send and receive funds. Although the MAS knows that there are several positive things about Libra, they are also worried about how to categorize it in terms of regulation.
For example, Menon explained that they consider that Libra offers an interesting proposition that could help users have a cheaper and faster remittance service. In general, remittances offered by other companies are expensive and slow.
Nonetheless, in order for Libra to be able to operate, it is necessary for the MAS to gather more information about the benefits over existing electronic payment systems. That means that the regulator has to properly understand how Libra is going to work and how it behaves in the market. At the same time, they also need to address different issues including economics, security and privacy.
The comments that Menon gave come after the statements gave by other regulatory agencies and regulators around the world. In Russia, for example, informed that they are not going to be legalizing Facebook’s cryptocurrency. The Chairman of the Russian State Duma Committee on Financial Market Anatoly Aksakov explained that they will not be legalizing this digital asset in the country.
In addition to it, the governor of the Bank of England Mark Carney said that he is open mind about the virtual currency but not “open doors.” He suggested that there are going to be things to discuss and review before the digital currency is released to the market. France has also decided to create a task force that is expected to be regulating the cryptocurrency market, including Libra.
In the United States, the U.S. House Financial Services Committee will be holding a hearing about Libra as soon as on July 17.
There are also some analysts that consider that Facebook's digital asset Libra is simply an ETF rather than a stablecoin or a virtual currency.