UK Finance Minister: British Govt. Won’t Stop Libra Coin, Regulators Should Decide, Not Lawmakers
Phillip Hammond, the Finance Minister of the United Kingdom, has recently affirmed that it is the regulators’ job to decide whether Facebook’s Libra coin will be accepted into the U. K., not the lawmakers’ responsibility.
He was recently interviewed by CNBC and talked about the whole situation, affirming that the regulators should investigate the case and determine whether Facebook will need a banking license to operate in the country or not. According to him, there is a consensus that the government will not engage directly with Libra and that this is an issue that will be dealt with using the current regulation.
The context of the interview was that the lawmakers in the U. S. are currently making a big fuss about Libra. They are currently holding sessions to determine whether the token should be accepted or not.
Facebook is the most powerful social network in the world, so the token will obviously have a big impact on the economy of the world. The product is initially being marketed as a solution for people who are currently unbanked but it actually seems that Facebook may want to compete with the dollar, too, which concerns the U. S. regulators.
The president of the U. S. Donald Trump even said recently that Facebook would need a banking license in order to operate Libra in the country, too, which generated some controversy. Hammond, responding to this, affirmed that politicians should not make this call.
To him, the regulators should do it, as the world has independent systems exactly put in place in order to avoid presidents making this kind of decision, so the idea should be followed.
Libra could, in his opinion, be a very positive thing as long as it was properly regulated and if Facebook and the Libra Association tried their hardest to create a compelling use case for the token.
Hammond noted, however, that this does not mean that he is unconcerned about the regulation. In fact, if there is any issue with the token, it should not be allowed into the country because it could start several problems.
Without any kind of proper scrutiny, Facebook’s Libra could easily create a great risk for the country and be used for several illegal activities such as terrorism, tax evasion and money laundering.
He finished by affirming that Libra seemed to be a very different asset when compared to Bitcoin. This was mostly due to the contrasting ownership structures that both cryptos had.
Hammond’s positive view is echoed by Mark Carney, the governor of the Bank of England. Carney affirmed that people needed to acknowledge how Facebook is attempting to solve important issues with the token. According to him, despite the downsides that the project may have, it is a considerably important initiative.
Carney affirmed, however, that Libra has to perfect from the start in order to released. The project is simply massive, so it could be a huge issue if the token was not released in a proper way.