France central bank Governor: Facebook’s Libra must seek banking licensing

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  • Facebook’s Libra must seek a banking license if it intends to be more than a payment digital asset.
  • French central bank reckons, “the risks are increased by the anonymity that Libra users would have.”

According to the French central bank governor, Francois Villeroy de Galhau Facebook’s Libra digital asset will have to apply for a banking license if the network intends to offer banking services. The Bank of France Governor in a new report and while on an interview with French Magazine l’Obs, Libra will have to comply with the current banking regulations including anti-money laundering policies noting that “the risks are increased by the anonymity that Libra users would have.”

While commenting on why a banking license will be necessary for Facebook’s Libra Villeroy said:

“If the project seeks to go beyond payments to offering banking services like deposits, it will then have to be regulated like a bank with a banking license in all the countries it operates. Otherwise, it would be illegal.”

Facebook continues to stir debate surrounding its soon to launch crypto. A report by Reuters on June 25 said that the Swiss National Bank’s governing board Thomas Moser said during the Crypto Valley Conference in Zug that he is having an open mind with Libra:

“Overall I think it’s 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.”

Moreover, the French Mister of the Economy and Finance recently said that Facebook will have to provide some guarantees. The guarantees un questions are to be formulated by the G7 central banks according to Maire.

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