Facebook’s Libra may come under some existing rules: Watchdogs


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Facebook’s Libra may come under some existing rules: Watchdogs

On Monday, the 4th of November 2019, Madrid-based global securities watchdog IOSCO, the International Organization of Securities Commissions engaged in regulating the securities and futures’ market, said that existing securities legislations could be applied to “stablecoin” digital currency initiatives likes of Facebook proposed Libra in order to review its potential headwinds and benefits, as global policymakers were met with a much-disputed question on whether new regulations were required for digital coins.

However, adding further strains on Facebook’s Geneva-based digital currency project, “Libra,” the global financial watchdog IOSCO, consisted of financial policymakers from all over the world including Europe, United States alongside Japan, had been quoted saying in a statement on Monday (November 4th) that its latest assessment on stablecoins had revealed the digital currencies could pose significant threat to the existing financial system, while the statement had also cited some of the benefits of digital currencies.

In point of fact, a stablecoin could be referred to a digital currency backed by a bucket of assets ranging from real currencies to commodities to government securities, while Facebook’s Libra could be legalized if it could be backed by bank deposits or government currencies alongside currencies likes of the American dollar or euro, which in effect had sparkled a glimmering ray of rare hope for an earlier-than-anticipated launch of Facebook’s Libra despite growing cynicisms from financial policymakers across the globe.