Home>Business>Facebook’s Libra Carries Both Benefits and Risks
Business

Facebook’s Libra Carries Both Benefits and Risks


Jerome Powell, the head of the United States Federal Reserve, has said that he recognizes both potential benefits and risks to Facebook’s recently-unveiled Libra cryptocurrency project . Powell made his remarks during a press conference broadcast on PBS news hour on June 19.

During the conference, the Fed chair was asked whether he was concerned as to whether Facebook’s libra cryptocurrency could undermine the Fed and erode its power to influence the economy.

In response, Powell said he believed that society remains a long way from digital currencies replacing central bank currencies, and that the central bank was not too concerned about no longer being able to implement monetary policy because of them given the infancy of the digital asset class.

Powell confirmed that Facebook had reached out to discuss its project with the Fed, noting that the company has ostensibly:

“Made quite broad rounds around the world with regulators, supervisors and lots of people to discuss their plans and that certainly includes us. It’s something we’re looking at, we meet with a broad range of private sector firms all the time on financial technology and there’s just a tremendous amount of innovation going on out there.”

In addition, Powell said he believed there to be both potential benefits and risks particularly of a digital currency such as Facebook’s, which would have a prospectively large application.

He said he echoed the sentiments of Bank of England (BoE) governor Mark Carney in that he believes “we will wind up having quite high expectations from a safety and soundness and regulatory standpoint if they do decide to go forward with something.”

As to whether libra should come under any formal regulation as such, Powell clarified that:

“We don’t have plenary authority over cryptocurrencies as such. They play into our world through consumer protection and money laundering […]  but I would say that through international forums we have significant input into the payment system and […] play an important role in the payment system here in the United States.”

Government officials worldwide have expressed a range of opinions on Facebook’s new token, which could have potential exposure to a combined 2.7 billion users each month.

Soon after the libra white paper was published, the chairwoman of the U.S. Financial Services Committee requested that Facebook halt development of the project. U.S. Senate’s Banking Committee is set to hear testimony about the project on July 16.

French Minister of the Economy and Finance Bruno Le Maire has said that the government intends to “ask for guarantees” from Facebook in regard to Libra.

Cointelegraph has also reported that the Chairman of the Russian State Duma Committee on Financial Market Anatoly Aksakov said that the country would not legalize the use of the token.





  • Bitcoin
  • Ethereum
  • Bitcoin cash
  • Litecoin
  • Cardano
  • Dash
  • Stellar
  • Ethereum classic
  • Lisk
  • Tron
  • Neo
  • Qtum
  • Omisego
  • Binance coin
  • Zcash
Scan to Donate Bitcoin to 1J6PGL1oemFb3hxabLygq4WgWx8cbfji1r

Please help us if you can with some Bitcoin

Scan the QR code or copy the address below into your wallet to send some Bitcoin

Scan to Donate Ethereum to 0xA8E701dd11280a98e8F2e0A14064AC829E32D50F

Please help us if you can with some Ethereum

Scan the QR code or copy the address below into your wallet to send some Ethereum

Scan to Donate Bitcoin cash to qrth4e0g93h3gpxex8ycwuxtsa332tha5qvkmlz0g5

Please help us if you can with some Bitcoin cash

Scan the QR code or copy the address below into your wallet to send some Bitcoin cash

Scan to Donate Litecoin to LTxxjySMDtERJhHYJ99UFW9AamAWTwCAZ4

Please help us if you can with some Litecoin

Scan the QR code or copy the address below into your wallet to send some Litecoin

Scan to Donate Cardano to DdzFFzCqrhsopoZLhbouUwh2NvvWMPeFrXQW9vNNpPKrjKbRGyLRN5joJgCeZ6e1MRHtPHeLffpkNpQs5AdDA8qFCZ4gA9bYtaerNQTk

Please help us if you can with some Cardano

Scan the QR code or copy the address below into your wallet to send some Cardano

Scan to Donate Dash to XmAdEHrwiVZJVkAxe8hK5U6HZB59L5yhmK

Please help us if you can with some Dash

Scan the QR code or copy the address below into your wallet to send some Dash

Scan to Donate Stellar to GD4KROE42HPOMT7BT6M27HHLFCOSIXPYY2V3WSCX5FYEWRJDIJQ4RWFT

Please help us if you can with some Stellar

Scan the QR code or copy the address below into your wallet to send some Stellar

Scan to Donate Ethereum classic to 0x5BF3fCAC8deA20CF21C9D0D9d058E00EEfc431Ae

Please help us if you can with some Ethereum classic

Scan the QR code or copy the address below into your wallet to send some Ethereum classic

Scan to Donate Lisk to 15642042552518336132L

Please help us if you can with some Lisk

Scan the QR code or copy the address below into your wallet to send some Lisk

Scan to Donate Tron to TYnAenRiV6BsTiE6FVyAcDDxZtBKUQTFxN

Please help us if you can with some Tron

Scan the QR code or copy the address below into your wallet to send some Tron

Scan to Donate Neo to ATiXRHVqYqrNktbxJfcDETfnrSUWSG4cPb

Please help us if you can with some Neo

Scan the QR code or copy the address below into your wallet to send some Neo

Scan to Donate Qtum to QUYXxY6kX7TY2HSLwVYMwFaJNZLwvX5uyp

Please help us if you can with some Qtum

Scan the QR code or copy the address below into your wallet to send some Qtum

Scan to Donate Omisego to 0xA8E701dd11280a98e8F2e0A14064AC829E32D50F

Please help us if you can with some Omisego

Scan the QR code or copy the address below into your wallet to send some Omisego

Scan to Donate Binance coin to 0xA8E701dd11280a98e8F2e0A14064AC829E32D50F

Please help us if you can with some Binance coin

Scan the QR code or copy the address below into your wallet to send some Binance coin

Scan to Donate Zcash to t1cBCyKgSSqWaNrkpvQZUSTuxMmAbbAyFpZ

Please help us if you can with some Zcash

Scan the QR code or copy the address below into your wallet to send some Zcash



Source link

Review Overview

Summary