Since the announcement of Facebook’s Libra Coin rolled out, regulations around it become the center point to discuss. However, the community has mixed statements on how well Facebook can align with the regulatory standards – in fact, whether or not regulatory bodies will actually accept the way Facebook intends to launch it for billions of its users.
BoE Raising Eyebrows at Facebook’s Libra
In a scenario where many people talk about Libra coin, Calibra wallet, Libra blockchain, and other crypto-oriented features Facebook is launching, Bank of England’s (BoE) Governor, Mark Carney strongly believes that ‘the Libra coin will have to be subject to the highest standards of regulations’.
But this doesn’t mean he hates Libra coin, in fact, he said he had an open mind to Libra but according to him there would be no open door to its launch. This is because Libra coin will have to meet the highest standards of regulations. The real fact is that Facebook is a platform for billion users across the world and anything concerning cryptocurrency is a matter that eventually raised the eyebrows of regulators.
Concerning the similar regards, crypto community in countries like India is very much concerned with how will Govt of India reacts to the Libra coin announced by Facebook – because India is still in the uncertain zone of whether to regulate crypto or impose a complete ban on it.
Facebook Thinks to Comply with Regulators Though
Mr.Carney is one of the known faces of the banking industry who often discusses crypto. During the central banker’s conference in Portugal, Mr. Carney spoke about Libra and states that;
Bank of England’s Governor if Libra was successful in attracting users “it would instantly become systemic and will have to be subject to the highest standards of regulation”.
Facebook’s approach to the regulatory aspect is still a matter of situation and in fact one year from the date – when it will actually launch its Libra coin. But looking closer to its whitepaper, it’s quite impressive that the platform has openly noted his concern and the respect to collaborating with different individuals including regulators to make Libra a huge success. It mentioned in Libra whitepaper that;
We believe that collaborating and innovating with the financial sector, including regulators and experts across a variety of industries, is the only way to ensure that a sustainable, secure and trusted framework underpins this new system.
Mr.Carney further points out that;
BoE will look at Facebook’s proposals “very closely and in a coordinated fashion at the level of the G7, the Bank of International Settlements, the Financial Stability Board and the IMF”.
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com