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UK Finance Minister Philip Hammond said regulators, not lawmakers, should decide how to regulate Facebook's stablecoin Libra, CNBC reported on July 15th.
In an interview with CNBC's "Squawk Box", Hammond said the lawmaker should not decide to require Facebook's social media giant that he get a banking license because it's "a problem that regulators need to determine, not politicians". Libra could be "a very positive thing" once it's properly regulated, and added:
"We are not going to turn his back on him or try to stop him. We will participate and try to work with others to ensure that it is effectively regulated. "
Hammond further pointed out that, without proper control, Libya could pose a significant risk to the financial system as it could become a money laundering and terrorist financing tool. Hammond also pointed out that he saw a difference between Libra and Bitcoin (BTC) because their ownership structures were different.
Earlier in July, Bank of England Governor Mark Carney said people needed to recognize the problems Facebook was trying to solve with Libra, no matter how bad the project was.
Carney also said that Libra, because of the scale of the project, had to be almost perfect at the beginning – at least from a financial security point of view – to be released.
Hammonds commented on the Libra Cryptocurrency Project with the US Senate Banking Committee, to be held tomorrow, July 16, before the hearing. After the publication of the project's white paper, US regulators expressed concern about the potential effects of the project. on financial stability.
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