Bank of England lays out engagement rules with Libra
The Bank of England laid out the engagement rules with Facebook’s cryptocurrency named Libra before they meet together with the other digital payments providers.
BOE’s financial policy committee also said that the bank is well-prepared for Brexit's aftermath as it looks into the possibility of experiencing problems with borrowers belonging to the European Union.
“The terms of engagement for innovations such as Libra must be adopted in advance of any launch. UK authorities should use their powers accordingly,” the FPC said.
One of the terms highlights a requirement for the entire payment chain to present its operational and financial resilience, as well as providing information for regulators monitor payments.
“Libra has the potential to become a systematically important payment system,” said the Financial Policy Committee of BoE said.
The EU said it will propose a new law to cover crypto-asset projects including Libra as it is seen as a threat to the traditional financial system.
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