(BlockBar) Chair of the board of governors of the Federal Reserve System says that if Facebook cannot reassure people, the project of Libre will continue to be stopped.
According to CNBC, Jerome H. Powell, chairman of Federal Reserve System, told the U.S. Congressional Committee today that the project could not continue unless Facebook reassured people about its digital encrypted currency, Libra.
“Libra has caused a series of serious concerns, including privacy, money laundering, consumer protection, financial stability and so on,” Powell said, “these are all problems that should be solved thoroughly and openly.” As part of his semiannual monetary policy report to Congress, Powell today raised a series of questions about Facebook Libra with members of the House Financial Services Committee. When Maxine Waters, the chairman of the House Financial Services Committee and a California Democrat, asked about the regulation of the Global Digital Encrypted Currency Project, Powell said it should be “prudent, not rushed.”
As part of expanding its digital payment business, Facebook last month released a digitally encrypted currency called Libra which is scheduled to officially be launched next year and is expected to provide digital trading and payment services to billions of potential users. Subsequently, Libra attracted the attention of regulators around the world.
Powell said today: “If Facebook fails to answer some of the questions Libra may raise and the answer cannot get generally satisfaction, the project will not continue. All these problems need to be solved thoroughly and very carefully, and have to be decided through much deliberation.
Powell also revealed that the U.S. Central Bank (the Federal Reserve) met with Facebook representatives in the months before Facebook issued the plan of Libra project and had set up a working group to focus on unanswered questions. Powell said the Fed was also “coordinating” with other regulators and colleagues from other central banks around the world. He also said, “we support responsible innovation in financial services as long as the risks are properly identified and managed,”.
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