The Bank of England’s Financial Policy Committee (FPC) has issued a series of rules that Facebook’s stable coin Libra must follow before launching in the UK.
Rules for Libra
According to the FPC: "As Libra can become a systemically important payment system, it must meet the highest standards of sustainability and be subject to appropriate supervision."
Some of the principles detailed by the FPC require payment systems like Libra to be financially sustainable and provide sufficient information to monitor payment activity to identify and eliminate the risks to the financial stability of those systems.
Crypto wallets will be considered bank accounts. They will comply with rules such as deposit insurance and cash flow.
"The terms of participation in innovations such as Libra must be set before any launch," the FPC stated, adding:
"The UK authorities should use their powers appropriately."
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