BIS Demands Regulation on Libra
The Bank of International Settlements, one of the oldest financial regulators worldwide, has issued out a warning to their clients and the public that the StableCoin is known as “Libra” could be detrimental to the global finance industry. Created by Facebook, Libra will be maintained by one hundred different corporations. BIS thinks Tech Company’s entering the finance market will be convenient and risky for citizens worldwide.
Large corporations like Apple, Google, PayPal and Facebook could establish themselves as a dominant leader in the financial market due to their expansive user base. These companies will create efficient and effective ways to enhance the consumption of financial products. However, this will require complex data to be handed over, and the global stability of financial markets will fluctuate dramatically before Libra, or any other StableCoin can become the dominant lead over the competition.
The Bank of International Settlements has determined that policies and legislation must be created to build a comprehensive form of regulation towards data privacy. The bank also believes policies must be enacted to ensure competitors don’t aim to harm one another publically. The response to Facebook & other Tech Company’s entering the financial markets should be positive, while at the same time slightly concerning.
International collaboration is more critical than ever between financial regulators. Big Tech companies won’t proceed by the regulatory perimeters of each country if they don’t.
Lawmakers Worldwide Regulating Crypto
The International Settlements Bank isn’t the first to determine that worldwide regulation needs to be implemented on Project Libra & all other StableCoins. It was reported that the Government of France would be creating an investigation unit that will review various regulations and how they can adequately supervise over stable coins. This investigation unit will work alongside with central banks in France.
This task force will be run by Benoit Coeur, as announced by the Governor of the French Central Bank. Mr Coeur is a board member of the European Central Bank when asked to comment he stated: “Libra cannot and mustn’t happen. It’s out of the question for the Libra coin to become a sovereign currency.”
Additionally, the United States &it’s lawmakers have begun to look into regulation StableCoins and cryptocurrency. Maxine Waters, a Congresswoman, have asked for a moratorium to determine if regulation is required. The hearing is slated for July 16th, 2019 and will be held by the United States Senate Banking Committee.