The UK is studying the properties of Libra in-depth to prevent the digital currency from damaging the economy. This is what Philip Hammond, Chancellor of the Exchequer of the United Kingdom, said in a recent interview with CNBC’s Squawk Box.
Hammond explained that regulators must fully understand how Libra works to counter the risks associated with a project of this magnitude before it happens, saying:
“It’s potentially a positive, transformative step, but it also has the potential to deliver great risk into the system.”
— Squawk Box (@SquawkCNBC) July 15, 2019
Libra Could Work or Fail Depending on How Well Regulated It Is
Unlike Donald Trump’s critical stance, the British government is somewhat cautious, aware of the risks but also of Libra’s potential to improve the financial system — should everything go well.
In the end, from his point of view, it will all depend on how well regulated Libra is:
“If it’s not properly regulated, it could become another channel for money launderers, terrorist financiers, and organized criminals…If it works, and it’s properly regulated, it could be transformative in operating payments systems, for example, it could be a very positive thing.”
For this reason, Hammond explains that Facebook’s new project has raised the alarms of regulatory bodies around the world. Each country in which Libra operates must establish its own bundle of regulations that the Libra Association must comply with to operate legally.
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