UK Chancellor Gives Official Opinion on Benefits and Risks of Facebook’s Libra
The chancellor of the United Kingdom, Philip Hammond, has been recently featured on CNBC’s Squawk Box to talk about the upcoming Libra, the crypto created by Facebook. He talked about the dangers and possibilities that surrounded it and whether it would need a banking license or not.
According to Hammond, Libra will have an effect on the country if it is allowed in. Will this be a positive or negative effect? He does not seem to be too sure. Hammond affirmed that the effect can go both ways, as there some huge risk, but it may also prove to bring some great rewards.
If Libra is not really well regulated, though, he believes that the harm will be the main change. Any financial tool, without proper regulation, he believes, can be used in order to harm the investors. He did not seem to be fearing the lack of privacy, one of the main problems that most people have with Facebook, being more interested in the potential for money laundering.
He also affirmed that Libra was very different from Bitcoin because its whole structure was different and affirmed that the U. K. would find a way to properly regulate it if the token was allowed.
The Decision About Libra Is Not Political
In the United States, the controversy surrounding Libra is very heated. Several important figures have affirmed that it has to be banned, that it is a threat to national security or that it would need a banking license.
Hammond affirmed that the story will be quite different in the United Kingdom. According to him, the regulators and not the government will decide whether Libra will need a banking license or not. This, he affirmed, is the responsibility of the ones who normally oversee these questions, not the politicians.