Facebook’s Libra Cryptocurrency Project may need a Banking License, Governor of Bank of France noted

June 25, 2019 By: Nwabundo Wisdom

 

Still on investigations into Facebook’s Libra token, the Governor of Bank of France, Francois Villeroy de Galhau, disclosed in a report from a source on June 25, that Facebook’s Libra stablecoin must comply with anti-money laundering laws and also obtain a banking license if it intends to offer banking services.

According to the report, Villeroy stated that if Facebook’s Libra stablecoin project was to continue, the company must have to abide to existing banking regulations so as to reduce the risks of anonymity on the part of Libra users.
Villeroy, speaking of the requirements needed in obtaining a banking license, disclosed:

“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.”

In an another report from the Crypto Valley Conference held in Zug, an alternate member of the Swiss National Bank’s governing board, Thomas Moser, revealed that he has no issues with Facebook’s Libra crypto project. He said:

“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.”

The former economic adviser to Donald Trump, has also expressed support for Facebook’s cryptocurrency project.

As earlier reported, France formed a task force with members consisting of the G7 nations, with the objective of investigating what Facebook’s Libra stablecoin seeks to offer.

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