The Bank of England’s Financial Policy Committee (FPC) has published a set of rules that Facebook’s Libra stablecoin must adhere to before launching in the UK.
According to FPC, because “Libra has the potential to become a systemically important payment system,” it “would need to meet the highest standards of resilience and be subject to appropriate supervisory oversight…”
Some of the principles the FPC detailed will require payment systems, like Libra, to show financial resilience and ensure that “sufficient information is available to monitor payments activities” to identify and address emerging risks to the financial stability of these systems.
“The terms of engagement for innovations such as Libra must be adopted in advance of any launch,” FPC’s statement reads, adding that “UK authorities should use their powers accordingly.”
Author: Steven Zheng