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Regulations for Libra Are for Regulators to Decide, not Lawmakers, UK Finance Minister Claimed

By Katelyn James | July 17, 2019
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Regulations for Libra Are for Regulators to Decide, not Lawmakers, UK Finance Minister Claimed

Philip Hammond – current Finance Minister of the UK – claimed that it is regulators, rather than lawmakers, are responsible for coming up with proper regulations for Facebook upcoming Libra project.

During a “Squawk Box” interview hosted by the CNBC on July 15, Hammond believed that lawmakers should not be in charge of making the decision, of requesting Facebook to obtain a bank license, since it is “an issue for regulators to determine, not for politicians to determine.” Hammond also believed in the positive impact Libra can bring, only when it comes with sufficient and effective regulations.

“We’re not going to turn our back to it or try to stop it. We’re going to engage with it and try to work with others to ensure that it is effectively regulated.” He further stated.

Hammond also strongly notified that, should Libra not undergo critical examination, it could create great harm to the current financial system, since criminals can utilize it for their money laundering and financial terrorism.

Hammond further revealed that he can observe a few dissimilarities between Libra and Bitcoin (BTC), as the ownership structures of the 2 coins are highly in contrast.

In July 2019, Mark Carney – Governor of the Bank of England – claimed that the general audience needs to be more aware of the problems Facebook is trying to resolve, with its Libra project, regardless of the disadvantages.

Carney further remarked that, since Libra is a project which will perform on a huge scale, it is vital that Libra contains no flaws at the outset – at least in terms of financial security – to be considered for public release.

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