Bank for International Settlements: Facebook's encryption project Libra may bring risks to banks

The Bank for International Settlements (BIS) recently issued a warning that Libra, Facebook's encryption project, could pose risks to banks. BIS released a report on Sunday that large technology companies such as Facebook, Amazon and Google can quickly establish their dominant position in the financial sector with their vast user network. Although these companies can enhance financial inclusion, they can also pose a threat to financial stability and data protection. Therefore, regulators around the world need to coordinate to ensure a level playing field between large technology companies and banks. BIS also said that they need to adopt a more comprehensive approach to better use financial regulation, competition policy and data privacy regulations in order to respond to large technology companies entering the financial services sector and benefit from limiting risks.