The head of the US central bank believes that Facebook should not be allowed to launch Cryptomoneda Libra until the company details how it will resolve a number of regulatory issues.
“I think they should not be allowed to launch projects without there being any general satisfaction with how the company tackled money laundering,
said Jerome Powell, president of the Federal Reserve. The allegations were made during a hearing before the Financial Services Commission.
He added:
“Data protection, consumer confidentiality, all these things will have to be addressed very carefully and carefully in a deliberate process, not in a sprint for implementation.”
Powell added that Libra raised “many serious concerns” about financial stability and consumer protection. The Federal Reserve has set up a working group to track the evolution of the Cryptomon and to work with central banks in other countries.
The US Financial Stability Supervisory Board, a federal organization created in 2010 operating under the auspices of the US Treasury Department, will also analyze the project.
Powell explained that some of the concerns about Cryptomonda Libra result from the Facebook dimension. The social media network has over one billion users, which would give it too much influence.
“I want real answers”
Facebook has sparked a lot of controversy with the Libra whitepaper being published. US lawmakers, regulators and finance ministers around the world have asked the company to suspend the development of the Cryptomono until they get the answers to the project questions.
David Marcus, head of the Libra project, responded Tuesday to several questions from the Senate Banking Committee.
Senator Sherrod Brown, a member of the committee, was not impressed by Marcus’ answers, saying in a statement:
“Facebook did not provide answers about cryptomoneda Libra. I want real answers during the next week’s hearing. I ask our financial supervisors to closely examine Libra to ensure that users are protected. “
Marcus will testify in front of the Senate Banking Committee on July 16 and the House Financial Services Committee on July 17.
Related posts:
Why do cryptocurrency Exist – Institutions 
Bitcoin and independent property rights 
NASDAQ on market manipulation: Everyone is now talking about regulating bitcoin and cryptocurrency 
Pilot Porsche on Ethereum blockchain to trace provenance materials 
Xfers from Singapore is going to use blockchain Zilliqa 
Make your own tokens with the Guarda wallet
