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  • Facebook is trying to obtain a payment system license from the Swiss Financial Market Supervisory Authority.
  • Libra might face strict regulation once it is launched, Bank of England chief claims.

Bank of Japan (BoJ) governor Haruhiko Kuroda has requested international regulators for co-operation to regulate stablecoins like Libra, Reuters reported. He emphasized that policymakers should apply the highest level of regulations to such stablecoins. In Osaka, Kuroda addressed the business leaders saying:

“If Libra is introduced, it could have a huge impact on society.”

Swiss market regulator also has the same approach as Kuroda to regulate the digital currency.   Swiss Financial Market Supervisory Authority (FINMA) CEO Mark Branson commented on the regulatory body’s plan. He said that “a project of such a global dimension can be addressed only via international coordination and consultation with other supervisors and regulators.” He added:

“It is illusory to believe a single country can regulate and oversee a project like Libra on its own. The supervision of UBS or Credit Suisse also does not take place in complete isolation.”

To operate Libra under Swiss laws, Facebook is trying to obtain a payment system license from FINMA. Many other lawmakers and regulatory bodies are also suggesting the highest standards of regulations to oversee Libra. Mark Carney, the governor of the Bank of England, stated that he is keeping an “open mind” for Libra. However, he warned that it might face strict regulation once it is launched. Carney said:

“Anything that works in this world will become instantly systemic and will have to be subject to the highest standards of regulation.”  

France’s Finance Minister stated that the country will not allow Facebook to launch Libra in the European markets. Recently, Germany also passed a blockchain strategy to suppress the development of such stablecoins.