The Fed: The Libra project from Facebook cannot be launched without answers to the “troubling” questions

Jerome Powell, chairman of the United States Federal Reserve System (FRS), believes that the Libra Facebook project to create its own digital currency cannot be launched until the world's largest social network answers the “questions of concern to everyone”. Reported by Reuters .

Speaking on Wednesday to the House Financial Services Committee, Powell said in particular:

“Libra is a major concern in terms of privacy, money laundering, consumer protection and financial stability. I think the project cannot be launched until answers to these questions are received. ”

At the same time, stressing that digital currencies do not fully comply with existing rules, he noted that any Libra checks for compliance with legal requirements should be “patient and cautious”.

“I’m convinced that we all need time in this matter, ” said Powell.

How exactly the Fed can slow down the development of the project is not entirely clear, given the uncertainty of the US authorities regarding digital currencies. Nevertheless, Powell’s statement was another stone of criticism of Facebook by world regulators.

He also said that the Fed has established a special working group that will monitor the development of the Libra project and coordinate with central banks of other countries. He also expressed the hope that the idea voiced by him would be considered by the Financial Stability Supervision Board of the United States.

According to Powell, he supports the development of financial risks, subject to the identification of relevant risks, although he noted that a huge Facebook audience certainly places Libra in a separate category.

"Facebook has over a billion users, so I think that for the first time we have the possibility of very broad acceptance [of an asset], " said the head of the Fed.

The day before, the head of the blockchain-Facebook division, David Marcus, in his letter to the House Financial Services Committee assured the congressmen that the company would make every effort to ensure the security of personal data of users of the upcoming Libra project.

We also recall that in the near future in the US Congress will be held two hearings regarding the digital currency Libra, in which David Markus will defend the interests of Facebook.

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