Adding further strains on to social networking titan, Facebook Inc.’s latest project to launch a digital currency, dubbed as Libra, which had already triggered concerns among policymakers across the world, on Wednesday, the 10th of July 2019, Chairman of US Federal Reserve, Jerome Powell said that the Facebook’s plan to initiate a digital currency could not be allowed to go forward until some critical concerns were properly addressed.
In fact, policymakers across the world had already been piling up pressures on Facebook Inc.’s digital currency libra, which had not yet included any recognized financial institutions or lender as a supervising entity for its derivatives, triggering possibilities of bypassing traditional financial service providers likes of banks to reach services to the consumers through its platform alongside potential money laundering concerns.
Nonetheless, latest comments from the United States’ most powerful financial regulator had underlined much stiffer-than-anticipated regulatory obstacles for the project ahead, as Fed Chair Powell said to the US House of Representatives Financial Services Committee on Wednesday (July 10th), “Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability.
I don’t think the project can go forward. It’s something that doesn’t fit neatly or easily within our regulatory scheme but it does have potentially systemic scale. It needs a careful look, so I strongly believe we all need to be taking our time with this”.