July 21, 2024

Bank of England issues requirements for launching Libra in UK

The UK Central Bank has released the final version of the requirements and principles that need to becomply with the Libra project in order to work in the country.

Bank of England officials called Libra “a systemically important payment system,” and therefore the UK Central Bank needs to be able to track payment chain information.

“The Bank of England Financial Policy Committee believes that such a system should meet the highest standards and be subject to appropriate regulatory oversight,” the report said.

Bank of England stressed that all participantsLibra associations must also be subject to strict supervision. In addition, the regulator will monitor exchanges that will add the possibility of trading stablecoin to their sites and compatible wallets:

“Libra’s stability depends not only onstability of the Association members and the company's reserve fund, but also from the actions of other organizations. We are talking about validators, exchanges and wallet developers. This further emphasizes the need for end-to-end system stability.

At the end of September, ECB board member Benoit Coeure stated that the Libra project could both solve many problems in the field of international payments and create new difficulties.