Cryptocurrencies: Facebook

(asked on 19th June 2019) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of plans by Facebook to launch its own crypto-currency, Libra, on the stability of the financial system.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 28th June 2019

The Government does not comment on the proposed business models of individual companies. 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 associated with cryptoassets and other applications of distributed ledger technology.

The Taskforce’s final report[1] 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.

Treasury Ministers have meetings with a wide variety of organisations in the public and private sectors, as well as international counterparts, as part of the process of policy development and delivery.

Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis here: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel

[1] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/752070/cryptoassets_taskforce_final_report_final_web.pdf

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