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  • The new BoE rules will require Facebook to provide transaction information for monitoring.
  • The European Union also wants to create new rules to govern digital assets like Libra.

The Bank of England has put in place rules that will be used to govern engagement with Facebook’s proposed digital currency Libra. According to Reuters, providers of digital payments are required to meet before allowing the rules to be used in Britain.

Amid Brexit talks, the Financial Policy Committee assured that banks and other parties in the financial sector are ready for the worst-case scenario. The FPC, however, is aware that there is a likelihood of disruption in borrowing activities with the European Union.

“The terms of engagement for innovations such as Libra must be adopted in advance of any launch,” the FPC said in a statement. “UK authorities should use their powers accordingly.”

BoE requires that Libra displays operational and financial resilience as well as share information to enable regulators to track payments.

Libra has the potential to become a systemically important payment system,” the FPC assured.

Consequently, the European Union said on October 8 that it was going to come up with new rules that will cover digital assets such as Libra because they pose a greater risk to the entire financial system.