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European watchdogs demand detail on Facebook's cryptocurrency

Video credit: Reuters Studio
Published on June 25, 2019 - Duration: 01:17s

European watchdogs demand detail on Facebook's cryptocurrency

Facebook's fledgling cryptocurrency faced mounting scrutiny on Tuesday as European central bankers and regulators demanded more detail on the social media giant's Libra project.

Francis Maguire reports.

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European watchdogs demand detail on Facebook's cryptocurrency

Facebook's new cryptocurrency Libra isn't getting many Likes from Europe's central banks and regulators.

Many want the tech giant to give more details about the project.

Britain's top financial regulator said there isn't yet enough info to understand Libra, Andrew Bailey - chief executive of the Financial Conduct Authority - also said Facebook wouldn't get the go-ahead for the currency without further disclosures.

Last week Facebook announced plans to launch Libra in early 2020.

Cryptocurrencies like bitcoin are still one of the least-regulated areas of finance..

And so the response of regulators to Libra could have a crucial impact on its prospects.

U.S. lawmakers also have privacy concerns about the project, And European central bankers want oversight to make sure Libra doesn't hurt the financial system...and isn't used to launder money.

The Bank of Italy joined Britain as it called for more information, And the Bank of France said Libra would have to respect anti-money laundering regulations.

Facebook has 28 partners - with the likes Mastercard, PayPal and Uber all onboard for on the project.

They also had at least some support from Europe, Thomas Moser of the Swiss National Bank said he's 'pretty relaxed' about the cryptocurrency - As he believes the U.S. firm has shown they will 'play by the rules' as they've contacted regulators.

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