Facebook’s Libra Coin May Need Banking License to Operate


As per the recent news, the Bank of France Governor Francois Villeroy de Galhau addressed that Facebook Libra Coin (stablecoin) should comply with the anti-money laundering regulations and should seek for a banking license if it’s going to provide banking services, Reuters report on 25th of June.

As per the recent reports Villeroy admitted in an interview with a French magazine that there is the scope of improvements in cross border money transfers.

He also compiled that the Libra stablecoin should comply with the existing banking regulation because of the increased anonymity that the libra would provide its users. To this Villeroy Quoted:

“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.”

To this, an alternate member of the Swiss National Bank’s Thomas Moser said he is open-minded Facebook’s new Cryptocurrency project. Thomas said over it:

“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 French Minister of Finance intended to ask for guarantees regarding its forthcoming digital currency Libra. But since the guarantees are still to be obtained from Facebook.

Even more, a former economic adviser of the United States expressed his support for Facebook’s stablecoin Libra.

Also Read: JPMorgan Will Launch ‘JPM Coin’ By End of 2019