Singapore Thinks Libra is a Risk But Does Not Want to Miss out on Its Potential Benefits

Singapore Thinks Libra is a Risk But Does Not Want to Miss out on Its Potential Benefits

by September 23, 2019
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Ravi Menon, Managing Director of Monetary Authority of Singapore, joins a growing list of regulators around the world voicing their concerns about Facebook’s Libra.

In an interview with Financial Times, he said that Facebook’s Libra raises a global financial risk that must be addressed by regulators worldwide. He noted that some of the risks that Libra poses are global in nature and that there is a need for a coordinated approach.

In the past, Ravi Menon has also expressed reservations about Facebook’s Libra, adding that the key is to figure out the nature of the beast and at this juncture, they are not sure yet.

Given Ravi Menon’s recent appointment as the Chair of the BIS Asian Council his views on the matter have an increasingly important influence on the fate of Facebook’s Libra.

Despite the concerns Ravi Menon stressed that Singapore is still keen to ensure that it does not miss out on any potential benefits of Libra, he acknowledges the promise that Libra holds for cross border payments but questions if it could be done without building up other kinds of risks.

Consistent with his views, Singapore’s Prime Minister Lee Shien Loong described blockchain and Facebook’s Libra as “There’s a lot of hype, and whether this is really the next big things remains to be seen”.

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