US central bank has 'serious concerns' about Facebook's cryptocurrency Libra, report says

CNET | 7/10/2019 | Corinne Reichert
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Even more regulators are looking into Facebook's cryptocurrency Libra.

The US Federal Reserve System has added its voice to the increasing doubts raised by lawmakers and politicians worldwide about Facebook's newly announced cryptocurrency Libra. Jerome Powell, Federal Reserve chair, said the US central bank has "serious concerns" about Libra when speaking to House lawmakers Wednesday, The Wall Street Journal reported.

Facebook - Month - Digital - Coin - Body

Facebook last month unveiled the global digital coin, which will be managed by a governing body called the Libra Association and through a wallet named Calibra. Facebook is working alongside 27 launch partners for Libra, including PayPal, Visa, Uber, Coinbase, Lyft, Mastercard, Vodafone, eBay and Spotify, but aims to have 100 members in the Libra Association by 2020.

Libra -- set to launch in the first half of next year -- is intended to be used to purchase products, send money internationally and make donations.

Project - Sponsors - Possibility - Benefits - Access

"While the project's sponsors hold out the possibility of public benefits, including improved financial access for consumers, Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability," WSJ reported Powell as saying when asked about Libra by Rep. Maxine Waters.

Both the Federal Reserve System and a separate panel called the Financial Stability Oversight Council are meeting to discuss Libra alongside global policy makers, Powell also reportedly said.

Board - Governors - Federal - Reserve - System

The board of governors of the Federal Reserve System didn't immediately respond to a request for comment, but David Marcus, head of Calibra, last week said the Libra Association is "committed to a collaborative process with regulators, central banks, and lawmakers to ensure that Libra helps with the kinds of issues that the existing financial system has been fighting."

Marcus tweeted that Facebook went live with its announcement of Libra so early so that it could have such dialogue and get feedback on implementation.

Comments - @ - Federalreserve

"Just caught up with comments from @federalreserve...
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