France central bank Governor: Facebook’s Libra must seek banking licensing

  • Facebook’s Libra must seek a banking license if it intends to be more than a payment digital asset.
  • French central bank reckons, “the risks are increased by the anonymity that Libra users would have.”

According to the French central bank governor, Francois Villeroy de Galhau Facebook’s Libra digital asset will have to apply for a banking license if the network intends to offer banking services. The Bank of France Governor in a new report and while on an interview with French Magazine l’Obs, Libra will have to comply with the current banking regulations including anti-money laundering policies noting that “the risks are increased by the anonymity that Libra users would have.”

While commenting on why a banking license will be necessary for Facebook’s Libra Villeroy said:

“If the project seeks to go beyond payments to offering banking services like deposits, it will then have to be regulated like a bank with a banking license in all the countries it operates. Otherwise, it would be illegal.”

Facebook continues to stir debate surrounding its soon to launch crypto. A report by Reuters on June 25 said that the Swiss National Bank’s governing board Thomas Moser said during the Crypto Valley Conference in Zug that he is having an open mind with Libra:

“Overall I think it’s an interesting development and I’m pretty relaxed about it. [...] They have clearly indicated that they are willing to play according to the rules, they have been contacting the regulators.”

Moreover, the French Mister of the Economy and Finance recently said that Facebook will have to provide some guarantees. The guarantees un questions are to be formulated by the G7 central banks according to Maire.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin market update: BCH/USD sellers catalyze the breakdown under $220

The crypto market is bleeding across the board. Major cryptos like Bitcoin and Ethereum fall overnight while Bitcoin Cash engaged the reverse gear during Wednesday’s European session. From an opening price of $226.97, BCH ascended to an intraday high of $227.76. 

More Bitcoin Cash News

IOTA price analysis: IOT/USD loses ground, moves within the recent channel

IOTA, the 17th largest digital asset with the current market value of $745 million, has been moving in a tight range recently. The coin has lost 1.8% of its value on a day-to-day basis amid global sell-off on the cryptocurrency market.

More IOTA News

Ethereum price prediction: ETH/USD collapses below $170.00 – Confluence Detector

ETH/USD surrounded $170.00 support amid massive sell-off on the global cryptocurrency market. ETH, the second digital coin has lost over 4% of its value in recent 24 hours to trade at $167.00 by press time.

More Ethereum News

Facebook’s Libra could be regulated by the SEC: The US Congress draft bill reveals

Facebook is yet to find a regulatory breakthrough for its proposed digital project, Libra. However, if the United States Congress goes ahead with the proposal to draft a bill describing stablecoins, Libra could quickly fall under the wings of the Securities and Exchange Commission.

More Libra News


Bitcoin Weekly Forecast: Nothing to crow about

Bitcoin (BTC) attempted a recovery above $8,400 and resumed the decline into the end of the week.

Read the weekly forecast