Singapore's Central Bank Wants More Information on Facebook's Libra Crypto

The Monetary Authority of Singapore reportedly has concerns over Facebook's recently unveiled cryptocurrency project, Libra.

AccessTimeIconJun 27, 2019 at 10:10 a.m. UTC
Updated Sep 13, 2021 at 9:22 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Singapore's central bank, the Monetary Authority of Singapore (MAS), is seeking more information from Facebook about its recently unveiled cryptocurrency project, Libra.

As reported by Bloomberg, MAS managing director Ravi Menon said at a media briefing on Thursday that his institution has held talks with the social media giant over concerns about how Libra would function, although he acknowledged there are potential benefits too.

Currently, MAS is having trouble deciding on how to categorize Libra in terms of regulation. "At this point we are not sure yet,” Menon said.

Regarding the possible benefits, he said that Libra "offers a very interesting proposition that could help to address” existing “expensive, inefficient, sometimes risky” methods of remittance.

However, MAS needs more information to gauge these benefits over existing electronic payments systems. The regulator needs to understand "how exactly it’s going to work." Menon said, including aspects such as Libra's economics, security and privacy.

Menon's comments come as the latest in a line of global regulators to state that more information is needed to understand the benefits and risks of Libra.

Authorities in Italy, the U.K. and France have recently indicated that Libra raises issues that must be examined.

Over in the U.S., the House Financial Services Committee will host a hearing on Facebook’s libra cryptocurrency next month, just a day after the Senate Banking Committee holds its own hearing.

Maxine Waters, chair of the powerful House committee, has raised concerns that Facebook's token could ultimately rival the dollar, while French finance minister Bruno Le Maire has said it's “out of question’’ that Libra be allowed to “become a sovereign currency. It can’t and it must not happen.”

As a result, France is creating a task force within the Group of Seven (G7) nations to examine the issues.

Facebook image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.