Bank of England Dictates Rules For Libra's Deployment in The UK
The Bank of England (BoE) has finalized a set of principles that must be adopted by the Facebook-led Libra cryptocurrency project before it goes live in the UK.
The BoE's Financial Policy Committee (FPC) released this week's October Financial Policy and Overview Report calling the payment network a potentially "systemically important payment system."
"The FPC judges that such a system would need to meet the highest standards of resilience and be subject to appropriate supervisory oversight," the committee summarized in the policy.
The FPC calls on regulators to use "Their powers properly" because of established standards, and therefore the BoE notes that it wants to have access to information on payment chains as a prerequisite for its supervision.
The Libra Association and the associated basket of various fiat currencies that support the network are of paramount importance, a more detailed report continues. Participants in the network, exchanges listing the Libra stablecoin, and wallets compatible with Libra will also be scrutinized.
Earlier this week, the Finance Minister candidate of the EU Commission addressed similar standards for the deployment of Libra.
Minister Olaf Scholz said in his hearing that under his leadership, the EU would establish a regulatory framework for the payment network. He also reiterated earlier this week that although he’s not against digital currencies, the power for issuing currencies must remain with states, not private companies.