Bank of England lays out 'terms of engagement' for Facebook's Libra

The Bank of England's Financial Policy Committee (FPC) has published a set of rules that Facebook's Libra stablecoin must adhere to before launching in the UK.

According to FPC, because "Libra has the potential to become a systemically important payment system," it "would need to meet the highest standards of resilience and be subject to appropriate supervisory oversight..."


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Some of the principles the FPC detailed will require payment systems, like Libra, to show financial resilience and ensure that "sufficient information is available to monitor payments activities" to identify and address emerging risks to the financial stability of these systems.

"The terms of engagement for innovations such as Libra must be adopted in advance of any launch," FPC's statement reads, adding that "UK authorities should use their powers accordingly."

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Steven Zheng is a researcher for The Block. He joined The Block in August 2018. Steven graduated from St. John’s University with a degree in economics. Previously, he covered blockchain and crypto at Radicle, a startup analytics firm. He also had brief stints at Cheddar, a media startup, and Bowery Capital, a venture capital firm. He owns bitcoin. Follow Steven on Twitter at: @Dogetoshi

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