Financial regulators must act fast to prepare for the push by U.S. tech giants such as Facebook Inc. into the financial system, according to European Central Bank Executive Board member Benoit Coeure.<\/p>\n
\u201cIt\u2019s out of the question to allow them to develop in a regulatory void for their financial service activities, because it\u2019s just too dangerous,\u201d Coeure said on Sunday in Aix-en-Provence in southern France. \u201cWe have to move more quickly than we\u2019ve been able to do up until now.\u201d<\/p>\n
Facebook\u2019s plan for a digital currency called Libra has policy makers scrambling. The U.K.\u2019s three main financial regulators are working together on how best to respond. Governor Mark Carney has said the Bank of England approaches it \u201cwith an open mind but not an open door.\u201d<\/p>\n
The plan has also drawn fire in Washington, with more than 30 groups influential with Democrats demanding a halt to the project to deal with the \u201cprofound questions\u201d it raises. David Marcus, the executive leading Facebook\u2019s Libra and blockchain efforts, will testify before Congress this month on the initiative.<\/p>\n
Coeure said that the development of digital currencies is exposing deficiencies in existing regulation and the failure of the banking system to adopt new technology.<\/p>\n
\u201cAll these projects are a rather useful wake-up call for regulators and public authorities, as they encourage us to raise a number of questions and might make us improve the way we do things,\u201d Coeure said.<\/p>\n
Financial regulators must act fast to prepare for the push by U.S. tech giants such as Facebook into the financial system.<\/p>\n","protected":false},"author":341034,"featured_media":221973,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[44696],"tags":[191,161,4188],"class_list":["post-312643","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-cryptocurrency","tag-facebook","tag-regulation"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/312643"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=312643"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/312643\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/221973"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=312643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=312643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=312643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}