Federal Reserve Chair Powell Demands Thorough Review of Facebook Libra
Federal Reserve Chairman Jerome Powell states that Facebook's proposed Libra cryptocurrency raises serious concerns regarding privacy, money laundering, and financial stability. He emphasizes that the project cannot move forward without comprehensive answers to regulatory questions.
Federal Reserve Chairman Jerome Powell raises serious concerns about Facebook's proposed Libra cryptocurrency, citing potential risks related to privacy, money laundering, consumer protection, and financial stability. He addresses these issues during a Congressional committee hearing and announces the formation of a dedicated working group to examine the project thoroughly.
Lawmakers from both sides of the aisle express deep skepticism about the tech giant's financial ambitions, with some representatives warning that Libra empowers sanctions evaders and terrorists while threatening the status of the US dollar. Representative Maxine Waters calls for a halt to the project, characterizing it as an unchecked expansion of Facebook's reach into the daily lives of its users.
Powell insists that Facebook takes a careful, deliberate approach rather than rushing toward implementation, stating clearly that Libra cannot go forward without broad satisfaction from regulators and lawmakers. The company plans to launch the Switzerland-based digital currency in 2020 alongside major corporate partners like Visa, Mastercard, and Uber, but faces intense global scrutiny before it can proceed.