U.S. Treasury Investigating Risks of Stable Libra

The US Treasury has committed to oversee the cryptocurrency project Libra, developed by the social network Facebook.

Missouri congressman Emanuel Cleaver said in August he sent a letter to the Financial Stability Oversight Board (FSOC) and the Office of Financial Research (OFR) urging them to “pre-examine Libra and Calibra for possible systemic risk “.

Cleaver received a letter from the US Treasury Department this week confirming that there are “many questions” regarding Libra. The department said that as Congress “continues to study these issues,” the ministry “will closely monitor this market to fill any gaps in the law.”

“It is unclear whether US and foreign regulators will be able to control the Libra market and require corrective action if necessary. This problem should be solved if Libra gets permission to launch, ”the ministry said in a statement.

Given Facebook’s global reach, Cleaver argues that “it’s extremely important to research the project” to ensure that the Libra stablecoin “does not pose a systemic risk to the global economy.” Although he praised Facebook’s efforts to work with regulators to tackle Libra, Cleaver said the stablecoin “has the potential to upgrade or destroy the financial system.”

“Since Facebook is working in this direction, it is imperative that we receive confirmation of the impossibility of financing terrorism and money laundering through stablecoin Libra. According to the FSOC, serious problems in this area remain unresolved, ”he concluded.

The other day, Calibra CEO David Marcus (David Marcus) said that if US authorities continue to impede the development of Libra, then China will be the first to launch its own digital currency.