Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Facebook met UK officials three times before Libra announcement

Published 18/09/2019, 17:04
Facebook met UK officials three times before Libra announcement
META
-

By Tom Wilson and Huw Jones

LONDON (Reuters) - Facebook (NASDAQ:FB) met British finance ministry, central bank and regulatory officials in the weeks before making public its plans for the Libra digital currency, responses to Reuters freedom of information requests show.

The details of the meetings suggest a concerted effort by the world's biggest social network to try to win support for its plans ahead of the June 18 unveiling of Libra, a cryptocurrency that will be backed by major currencies and other assets.

Despite this, Libra has drawn a sceptical response from regulators and politicians in Europe and the United States, with concerns centring on its potential to upend the world financial system, harm privacy and foster money laundering.

The head of the Bank of England is among those who have warned that Libra could pose risks to the financial system and should therefore face high regulatory hurdles. Britain's top financial regulator has also said more information was needed for Libra to get the go-ahead.

Facebook met a junior minister and officials in charge of cryptocurrency policy at Britain's finance ministry on April 23. A day later, it met the Financial Conduct Authority (FCA) to discuss Libra, according to meeting schedules released by the finance ministry and the watchdog.

The following month, on May 14, Facebook met officials from the finance ministry, Bank of England and FCA about Libra, the replies to Reuters requests show.

The authorities posed five questions to the company ahead of the meeting, redacted in emails requested by Reuters.

Facebook and the Geneva-based Libra Association declined to comment on the meetings. As it announced the project, due for launch in 2020, Facebook said it had met regulators and officials in the United States and abroad.

"Engaging with regulators, policymakers, and experts is critical to Libra's success," a Facebook spokeswoman said. "This was the whole reason that Facebook along with other members of the Libra Association shared our plans early."

Facebook declined to comment on whether it planned to seek regulation for Libra in Britain. The Libra Association said last week it planned to apply to become a licensed payments system in Switzerland.

A spokesman for Britain's finance ministry declined to comment on Libra. The ministry wants Britain to harness the potential benefits of cryptocurrencies while maintaining market transparency, protections and standards, he said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.