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Written question asked by Lord Myners (Crossbench) on Monday, 1 July 2019, in the House of Lords. It was due for an answer on Monday, 15 July 2019. It was answered by Lord Young of Cookham (Conservative) on Monday, 15 July 2019 on behalf of the Treasury.

Facebook: Cryptocurrencies

Question

To ask Her Majesty's Government what assessment they have made of the implications of Facebook’s proposed Libra cryptocurrency on the management of monetary and financial stability mechanisms and policies.

Answer

The Government does not comment on details of the proposed business models of individual companies. However, this proposal raises wider questions for policy and financial regulation. The Government is working with the Bank of England, the Financial Conduct Authority and international counterparts to consider these issues.

More broadly, the Government established the Cryptoassets Taskforce – comprised of HM Treasury, the Financial Conduct Authority and the Bank of England - to explore the risks and potential benefits of cryptoassets and consider the appropriate response. The Taskforce’s response set out commitments to further consider the regulatory approach to cryptoassets. The Government will consult on its approach to unregulated cryptoassets later this year.

The Taskforce’s final report, found that cryptoassets do not currently pose a material threat to UK or global financial stability, however this could change in the future, and the Bank of England’s Financial Policy Committee will continue to monitor the situation.

Secondary information

Type
Written question
Reference
HL16841
Session
2017-19
Subjects
Facebook Cryptocurrencies
Link
View this Written question on www.parliament.uk