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Fed Chair says Libra & # 39; Can not Go Forward & # 39; to Facebook addresses concerns

The head of the US central bank believes that Facebook should not be allowed to launch its libra cryptocurrency until the company describes how it will address a number of regulatory concerns.

"I just don't think it can go without broad satisfaction with the way the company has handled money laundering," said Jerome Powell, president of the Federal Reserve, in a hearing for the House Financial Services Committee on Wednesday. .

He added:

"Data protection, consumer protection, all of these things must be treated very carefully and carefully in a conscious process that will not be a sprint for implementation. "

According to Reuters, Powell added that Libra raised" many serious concerns "about financial stability and consumer protection as well. The Federal Reserve apparently set up a working group to track the development of cryptocurrency, and also works with central banks in other nations. 1

9659002] The US Financial Stability Supervisory Council, a federal organization established in 2010 operating under the auspices of the US Treasury, will also look at the project.

Powell explained that some of the concerns about Libra stem from Facebook's size and note that " have a few billion plus users. "

& # 39; I want real answer

Facebook has been on fire since publishing its White Paper to Libra, with lawmakers, regulatory authorities, and finance ministers over worldwide calling on the company to suspend development until the answer to questions about the project.

Dav id Marcus, Facebook's blockchain lead and the leader of Calibra, a subsidiary wishing to build a digital wallet for crypto competition, have answered some questions from the Senate Banking Committee on Tuesday. [19659002] Senator Sherrod Brown (D.-OH), a member of the committee, was repressed by Marcus' reply and said in a statement:

"Facebook failed to answer Libra. replies in next week's hearing, and I urge our financial watchdogs to investigate Libra closely to ensure that users are protected. "

Marcus will testify to the Senate Banking Committee on July 16 and the House Financial Services Committee on July 17.

Fed Chair Jerome Powell Image Through House Financial Services Committee / YouTube

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