Australia’s Central Bank Exercising Caution with Regards to Facebook’s Libra

The regulatory scrutiny for Facebook Libra seems to be never-ending. This time, the Payment System Board of the Reserve Bank of Australia reports that it will continue to work with regional regulators in order to ensure that adequate regulatory measures are put in place before the launch of any payment systems which include the recently announced Libra project from Facebook.

The Payment System Board is one of two mainboards of the Reserve Bank of Australia. The board is responsible for maintaining the bank’s payment policies, including those related to clearing and settlement (CS) facilities.

Libra Alongside Other Payment Systems Discussions

In a meeting held recently, the board discussed issues related to regulations for payment systems and crypto-assets. The board also discussed Facebook Libra and stated that it will coordinate with domestic and overseas regulators for ensuring that its implications are adequately addressed before its launch. According to RBI,

“Bank staff will continue to coordinate with relevant domestic and overseas regulators, to ensure that any payments system implications are appropriately addressed before any launch”.

Australia’s Bias Towards Cryptocurrencies

Libra, has faced many regulatory hurdles from jurisdictional financial regulators following the announcement of its launch in the second quarter of this year. It could not address all the questions of the U.S. Senate regarding regulatory compliance. Since then, there have been a lot of obstacles and opposition from governments and banks against the development of Libra. Recently, Australia joined global regulators in questioning Libra’s data privacy and protection policies.

Apart from Facebook’s “global cryptocurrency” which has attracted much regulatory scrutiny, Australia is also eyeing the rest of the crypto space skeptically. In January, the country’s Treasury released a statement revealing plans of looking into the potential risks and benefits of conducting ICOs in the country and the corresponding regulatory framework that needs to be put in place.

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