Banks may cut ties with Facebook

News that the chief executive of ING has warned that banks might have to cut ties with Facebook if the social media giant launches its Libra digital currency without fully addressing financial regulators’ money laundering fears, has provoked much response from the legal and financial world.

“In a digital age, financial crime is no longer merely a national concern - regulators need to cooperate globally if they wish to remain effective in the fight against financial crime,” says Bambos Tsiattalou, founding Partner at specialist criminal and civil litigation firm Stokoe Partnership Solicitors (www.stokoepartnership.com).

"Due diligence must be undertaken and regulating digital currencies to the same standard as traditional currencies should be the minimum expectation."

In a bid to address some of the concerns raised about Libra, David Marcus, CEO of Calibra, entered the fray on social media, arguing that Libra is not going to be a new currency, but merely a “better payment network and system running on top of existing currencies”.  

In the hope of addressing concerns that  “Libra could threaten the sovereignty of nations when it comes to money,” Marcus stressed that “for any unit of Libra to exist, there must be the equivalent value [of currency] in its reserve.”

Facebook is the driving force behind the Libra Association.