Facebook, Inc. (FB) Receives Guidelines for Planned Digital Currency ‘Libra’ From BoE

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Facebook, Inc. Common Stock (NASDAQ:FB) showed bullishtrend as shared jumped up 1.31% in pre trading session after the Bank of England has presented policies for the release of Facebook’s planned digital currency, Libra, tentatively welcoming the project while warning that it will require to meet the “highest standards.” 

Current week, in minutes from a committee meeting, the bank’s Financial Policy Report declared that the project will require to meet the highest standards of resilience and be subject to appropriate supervisory oversight. At the similar time, it added, Libra has the possible to become a systemically important payment system.

Facebook (FB) revealed that earlier this year its purpose to issue the digital currency, Libra, from a Swiss bank account. Over two dozen businesses and financial institutions have revealed tentative support for the project, which Facebook thinks will streamline payments and serve unbanked communities.

Facebook’s Zuckerberg to testify beforehand Congress on Libra.

On the other side, U.S. House Financial Services Committee reported that CEO Mark Zuckerberg is slated to testify before Congress in a special hearing on October 23. For read more click here

Previously, The Bank of England has uttered concern regarding Libra but supports the idea of a digital currency, reasoning that a network of sovereign “central bank digital currencies” could offset the dominance of the dollar. In September, Facebook met with UK officials three times prior to Libra’s declaration in June, as per reported by Reuters.

In enlarged settled standards, the Bank of England cautioned that Facebook would have to share responsibility for the digital currency with its counterparts, several of which are already reassessing their involvement, or have already left, such as payment processing giant PayPal.

The committee stated that “The resilience of the proposed Libra system would rely on the stability of not just the core elements of the Libra Association and Libra Reserve but also the associated critical activities conducted by other firms in the Libra ecosystem such as validators, exchanges or wallet providers.” They said, “This emphasized the need to ensure end-to-end resilience.”

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