Regulators and central bankers want to know more about the virtual currency of the social networking giant, which raises some apprehension.
On June 18, Facebook officially announced the arrival of its home-grown cryptocurrency, Libra, with a planned launch in the first half of 2020. Mark Zuckerberg's company has partnered with dozens of groups including Visa, Uber, eBay, MasterCard, PayPal, Spotify and Iliad, the company founded by Xavier Niel. Facebook's 2 billion social network users (including Messenger and Whatsapp) will be able to pay for their transactions via the messaging interface.
Virtual currency in the hands of a social network already holding a lot of data from hundreds of millions of users, this necessarily raises questions. For François Villeroy de Galhau, the governor of the Banque de France, " it's a project and a lot of questions. Our role as a central bank is not to be afraid of innovations, on the contrary, but to ensure the stability of the financial system and confidence in the currency, and thus ensure the protection of consumers. "
The governor wants the Libra to comply with the anti-money laundering regulations and argues that platforms that pass money should ask for money laundering .banking license to be able to launch services like the deposit.
Crossing the Channel, we see that the British neighbor is just as cautious. For the financial regulator, there is not enough information to better understand how the Libra works. Same thing in Italy, where one wishes to obtain additional information about it.
Until today, virtual currencies are not or little regulated, being still too small to potentially pose a risk to the financial system. It is obvious that the Libra could change the situation and encourage the authorities to take matters into their own hands. On the sidelines of the G20 summit, to be held on June 28 and 29, the Financial Stability Board, which is affiliated to it, could push regulators to look more closely at the issue.
On June 18, Facebook officially announced the arrival of its home-grown cryptocurrency, Libra, with a planned launch in the first half of 2020. Mark Zuckerberg's company has partnered with dozens of groups including Visa, Uber, eBay, MasterCard, PayPal, Spotify and Iliad, the company founded by Xavier Niel. Facebook's 2 billion social network users (including Messenger and Whatsapp) will be able to pay for their transactions via the messaging interface.
Banque de France wants to fight against money laundering
Virtual currency in the hands of a social network already holding a lot of data from hundreds of millions of users, this necessarily raises questions. For François Villeroy de Galhau, the governor of the Banque de France, " it's a project and a lot of questions. Our role as a central bank is not to be afraid of innovations, on the contrary, but to ensure the stability of the financial system and confidence in the currency, and thus ensure the protection of consumers. "
The governor wants the Libra to comply with the anti-money laundering regulations and argues that platforms that pass money should ask for money laundering .banking license to be able to launch services like the deposit.
Libra could speed up the process of regulating cryptocurrencies
Crossing the Channel, we see that the British neighbor is just as cautious. For the financial regulator, there is not enough information to better understand how the Libra works. Same thing in Italy, where one wishes to obtain additional information about it.
Until today, virtual currencies are not or little regulated, being still too small to potentially pose a risk to the financial system. It is obvious that the Libra could change the situation and encourage the authorities to take matters into their own hands. On the sidelines of the G20 summit, to be held on June 28 and 29, the Financial Stability Board, which is affiliated to it, could push regulators to look more closely at the issue.
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