Bloomberg Law
July 16, 2019, 2:56 PMUpdated: July 16, 2019, 3:56 PM

Don’t Rush to ‘Squelch’ Facebook’s Libra, IMF’s Lipton Says

Zoe  Schneeweiss
Zoe Schneeweiss
Bloomberg Editorial
William Horobin
William Horobin
Bloomberg News

Regulators will need to “step up” to contain any dangers emanating from digital currencies such as Facebook Inc.’s planned Libra token, according to International Monetary Fund acting Managing Director David Lipton.

“Risks include the potential emergence of new monopolies, with implications for how personal data is monetized; the impact on weaker currencies and the expansion of dollarization; the opportunities for illicit activities; threats to financial stability; and the challenges of corporates issuing and thus earning large sums of money -- previously the realm of central banks. So, regulators -- and the IMF -- will need to step up.”

He said ...

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