(Bloomberg) -- The U.K.’s three main financial regulators are working together on how best to respond to Facebook Inc.’s push into financial services.
The Financial Conduct Authority, Bank of England and U.K. Treasury are collaborating because the Libra cryptocurrency venture “touches on all three of us,’’ said Andrew Bailey, chief executive officer of the FCA. Libra, which will be managed by an association of 28 partners, will launch as soon as next year and allow Facebook users to send money to individuals or businesses via its Messenger and WhatsApp services.
“It has the potential to be extremely significant,’’ Bailey told the U.K. Parliament’s Treasury Committee on Tuesday. “It does raise big issues for the public policy world.’’
Bailey is the latest in a string of prominent policy makers to comment on Libra, with most other officials from Washington to Paris heaping criticism and skepticism the social-media giant’s intentions. BOE Governor Mark Carney said the central bank approaches it “with an open mind but not an open door.”
While Facebook announced Libra last week, Bailey said there is still insufficient detail to understand the business model and how it will make money.
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