BaFin President Urgently Called for International Standards Regarding Facebook Libra Project

By Emily Rys | June 27, 2019
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BaFin President Urgently Called for International Standards Regarding Facebook Libra Project

The German Federal Financial Supervisory Authority (BaFin) director has persistently requested legislators to come up with suitable standards, in regards to the ongoing crypto project from FacebookLibra.

Reported by Cointelegraph Deutschland on June 26th, during his speech at the International Club Frankfurter Wirtschaftsjournalisten, Felix Hufeld – the current head of BaFin – strongly emphasized that lawmakers, as well as regulators, should be more involved and concerned with Facebook Libra project, since an adequate amount of questions may surface, following the official introduction of the coin to the current market.

Hufeld has mentioned some potential regulatory solutions from BaFin, but still called for a regulatory framework on a global scale. 

“We certainly can not just watch. We will have to respond appropriately in any way. I can only hope that we will succeed in developing at least European, if not globally, basic standards.”

Furthermore, Hufeld urgently alerted banks about the possible harm of cheap funds, stating that an extensive drop in the interest rate would create an additional financial burden on them. This could consequently result in a forced shift or merge in business models of the banks.

Many different big players in the market have also raised their voices, regarding the potential impacts Libra project could have on the market. Earlier this week, Francois Villeroy de Galhau – the governor of the Bank of France – stated that the Libra stablecoin have to be in compliance with Anti-Money Laundering (AML) regulation, and has to obtain proper banking licenses should banking services are available.

“Overall I think it’s [Libra] an interesting development and I’m pretty relaxed about it. […] They have clearly indicated that they are willing to play according to the rules, they have been contacting the regulators.” Thomas Moser – one of the Swiss National Bank’s governing board – claimed in Crypto Valley Conference in Zug.

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