Singaporean central bank asks Facebook to ‘explain’ Libra

Libra-Singapore

There are more questions and concerns from various regulatory sources on Facebook’s Libra. A cryptocurrency project unveiled by the tech giant.

This time, it is coming from the Monetary Authority of Singapore, MAS, the country’s central bank that regulates all financial services and monetary policy.

The managing director of MAS, Ravi Menon said it has held direct talks with Facebook asking to better understand what Libra is and how it will function.

However, he was quoted by CoinDesk admitting that Libra “offers a very interesting proposition that could help to address” existing “expensive, inefficient, sometimes risky” methods of remittance.”

Moreover, he signaled that there is a need for more clarity as to how to classify and handle Libra from a regulatory framework point of view. Singapore is not hostile towards cryptocurrency. The country had in the last few years authorized various cryptocurrency exchanges to operate without stiff regulations when compared to China or even India.

While France, Italy have raised concerns on the security and regulatory concerns around Libra, Switzerland, the host to the Libra Association and the Bank of England have both expressed optimism about the digital currency.

In the same vein, the U.S. Federal Reserve Chairman while admitting Libra is welcomed, said the Federal Reserve will hold Libra to a ‘high’ bar’

Yesterday, at the Council on Foreign Relations in New York, he said: “Libra’s a new thing; we are looking at it very carefully.”

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