European central banks require more details on Libra

Facebook’s Libra project continues to attract the attention of central banks and regulators.

Before Facebook’s announcement, global central banks were not very keen on regulating cryptocurrencies, believing them to be too insignificant to pose a risk to the financial system, Reuters writes. However, with the Libra project underway, regulators have shown greater interest in the new token.

Multiple European central bankers and regulators say they expect more details from Libra. Financial Conduct Authority admits there is currently not enough information regarding Facebook’s cryptocurrency project, therefore it is unlikely to get a go-ahead easily without sharing more information.

“They are not going to walk through authorization without that,” said FCA’s chief executive Andrew Bailey.

Similarly, the Bank of Italy’s head of market and payment system oversight Domenico Gammaldi has also asked for more details regarding Libra.

Meanwhile, Bank of France Governor Francois Villeroy de Galhau expects Libra to respect anti-money laundering regulations. He also said Libra backers are expected to seek a banking license if it offered certain services. As France is currently presiding over the Group of Seven (G7), it is also planning to set up a task force to look into Libra.

The Bank for International Settlements (BIS) has also voiced its concerns over Libra, saying it could harm the banking sector.