Hammonds delivered his comment ahead of a hearing on the Libra cryptocurrency endeavor with the Banking Committee of the United States Senate, which will be held tomorrow, July 16. After the release of the job’s white paper, U.S. regulators voiced their concern about the project’s potential impacts on fiscal stability. The United Kingdom Finance Minister Philip Hammond explained that regulators rather than lawmakers should determine on how to govern Facebook’s secure coin Libra, CNBC reported on July 15. Hammond further worried that without proper scrutiny, Libra has capability as it could become a tool for money laundering and financing terrorism to pose danger to the monetary system. Hammond also pointed out that he sees a difference between Libra and Bitcoin (BTC) since they have contrasting ownership structures. “We are not going to turn our back to it or try to stop it. We are going to participate with it and attempt to work with others to make sure it is effectively controlled.”
Earlier in July, Bank of England governor Mark Carney stated people need to acknowledge the problems Facebook is trying to solve with Libra, regardless of the job’s potential downsides.
Carney stated that Libra, due to the huge scale of the project, has to be virtually perfect at the outset from a financial security perspective — in order for it to be released. In an interview with CNBC’s”Squawk Box,” Hammond explained that lawmakers should not make a decision to require the social networking giant Facebook to acquire a bank license because it is”a problem for regulators to determine, not for politicians to determine.” Hammond said that Libra could be”a very positive thing” once it is properly controlled, and as reported by Cointelegraph, he also added:
“We’re not going to turn our back to it or try to stop it. We’re going to engage with it and try to work with others to ensure that it is effectively regulated.”