Bank for International Settlements Calls for Regulations on Libra
- Since the release of the Libra whitepaper last week, the world's regulators have sprung into action.

The Bank for International Settlements (BIS), the world’s oldest global financial institution, has issued a warning that Facebook’s new stablecoin project, Libra, could pose a threat to the dominance of the global banking sector. The warning came in a section entitled “Big tech in finance: opportunities and risks,” in BIS’ Annual Economic Report, published on Sunday.
In the report, BIS explained that major tech companies--including Apple, Google, and Facebook--could “rapidly establish a dominant position” because of their large user bases.
And while the entry of “big tech” into the global finance industry “holds the promise of efficiency gains and can enhance financial inclusion,” “big techs' entry presents new and complex trade-offs between financial stability, competition, and data protection.”
"Benefit from the gains while limiting the risks.”
As such, the report also called for regulatory action.
BIS explained that international collaboration to develop regulations is extremely important. “As the operations of big techs straddle regulatory perimeters and geographical borders, coordination among authorities - national and international - is crucial.”
Lawmakers Around the World Are Already on the Move
But the beginnings of international regulatory efforts seem to have sprung up even before BIS’ report was published. On Friday, Reuters reported that the government of France would create a G7 force “to study how central banks ensure Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term like Facebook’s Libra are governed by regulations ranging from money-laundering laws to consumer-protection rules.”
The group, which was announced by French Central Bank Governor Francois Villeroy de Galhau, explained that the task force would be led by Benoit Coeure, a European Central Bank board member.
After the project’s whitepaper was released last week, French finance minister Bruno Le Maire said that Libra “can’t and…must not happen” and that “it is out of [the] question" for Libra coins to “become a sovereign currency.”
Lawmakers in the US have also sprung into action. Congresswoman Maxine Waters (D-CA) called for a moratorium on the development of the currency until the US government understands more about it; the US Senate Banking Committee will hold a hearing on the project on July 16th.
The Bank for International Settlements (BIS), the world’s oldest global financial institution, has issued a warning that Facebook’s new stablecoin project, Libra, could pose a threat to the dominance of the global banking sector. The warning came in a section entitled “Big tech in finance: opportunities and risks,” in BIS’ Annual Economic Report, published on Sunday.
In the report, BIS explained that major tech companies--including Apple, Google, and Facebook--could “rapidly establish a dominant position” because of their large user bases.
And while the entry of “big tech” into the global finance industry “holds the promise of efficiency gains and can enhance financial inclusion,” “big techs' entry presents new and complex trade-offs between financial stability, competition, and data protection.”
"Benefit from the gains while limiting the risks.”
As such, the report also called for regulatory action.
BIS explained that international collaboration to develop regulations is extremely important. “As the operations of big techs straddle regulatory perimeters and geographical borders, coordination among authorities - national and international - is crucial.”
Lawmakers Around the World Are Already on the Move
But the beginnings of international regulatory efforts seem to have sprung up even before BIS’ report was published. On Friday, Reuters reported that the government of France would create a G7 force “to study how central banks ensure Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term like Facebook’s Libra are governed by regulations ranging from money-laundering laws to consumer-protection rules.”
The group, which was announced by French Central Bank Governor Francois Villeroy de Galhau, explained that the task force would be led by Benoit Coeure, a European Central Bank board member.
After the project’s whitepaper was released last week, French finance minister Bruno Le Maire said that Libra “can’t and…must not happen” and that “it is out of [the] question" for Libra coins to “become a sovereign currency.”
Lawmakers in the US have also sprung into action. Congresswoman Maxine Waters (D-CA) called for a moratorium on the development of the currency until the US government understands more about it; the US Senate Banking Committee will hold a hearing on the project on July 16th.