UK: Libra warned of heavy oversight by Bank of England

The Bank of England (BoE) has warned Facebook that its plans of launching its digital coin, Libra, must be subject to tough oversight across its ecosystem before it is launched, reported the Financial Times.

Calling the payment network potentially “systemically important,” the BoE’s Financial Policy Committee released the October Financial Policy and Summary report on Tuesday, October 8.

The BoE’s Financial Policy Committee (FPC), which is responsible for spotting and mitigating threats to the UK’s financial stability, pledged that regulators would look at the actual functions of Libra and other payments companies, and seek to apply traditional regulations to them.

“The resilience of the proposed Libra system would rely on the stability of not just the core elements of the Libra Association and Libra Reserve but also the associated critical activities conducted by other firms in the Libra ecosystem such as validators, exchanges or wallet providers,” the FPC stated in its quarterly report.

Full Content: Financial Times

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