The Australian Prudential Regulation Authority (APRA) revealed that it could oversee Facebook’s Libra by playing a part in the proposed framework to govern digital assets. Today, APRA, submitted the proposal before the Senate Select Committee on Financial and Regulatory Technology.
APRA outlined recommendations for a new regulatory framework.
The Australian regulatory body made a comment to oversee Libra while outlining recommendations for a new regulatory framework for stored facilities from the Council of Financial Regulators. The council also includes the Australian Securities and Investments Commission (ASIC), the Reserve Bank and the federal Treasury. APRA said that the proposed framework is intended not only to fit the purpose for the current financial purpose but also be able to accommodate future developments and technological advances.
APRA would oversee wallets that store value
The proposal noted that APRA’s role in the framework would be to oversee wallets that are widely sued as a means of payment and store significant value for a reasonable amount of time. The proposal also cited Facebook Calibra as an example. The submission also indicated that products such as gift vouchers and pre-paid travel cards would face minimal regulation. Earlier, the central bank of Australia had said that Libra would not be allowed even with tight regulations.