July 11, 2019 | AtoZ Markets - Commenting on the recent hearing before the House of Financial Services Committee, Federal Reserve Chair Jerome Powell noted that a number of regulatory issues should be resolved regarding the upcoming Facebook stablecoin Libra.
Federal Reserve Chair discusses Facebook stablecoin Libra issues
While talking to Rep. Steve Stivers and Chairwoman Maxine Waters, Jerome Powell answered to a number of questions regarding Facebook stablecoin Libra regulatory issues, including anti-money laundering and Know Your Customer procedures.
Powel emphasized, that the banks that provide banking to Facebook cannot go forward until questions about money laundering, data protection, and consumer privacy are addressed ”very thoroughly and carefully.”
Federal Reserve Chair also discussed how Facebook stablecoin Libra project falls outside traditional regulatory bounds, highlighting the scale of the proposed cryptocurrency project:
“I think it’s something that doesn’t fit nearly or easily within our regulatory scheme. It does have a potentially systemic scale.”
Powell also noted that Facebook stablecoin Libra raises many serious concerns regarding privacy, money laundering, consumer protection, and financial stability, that should be thoroughly and publicly addressed before proceeding.
While testifying on Facebook stablecoin Libra, in a press conference on June 19, Powell suggested that Fed’s role in regulating Libra would not be direct but influential.
As previously Atoz Markets reported members of the House of Representatives Committee on Financial Services and over 30 advocacy groups have called on the US Congress to halt Facebook stablecoin Libra development.
Facebook assures congress of Libra coin compliance to regulation
David Marcus, the current Vice President of the Facebook Messenger and the head Facebook stablecoin Libra corresponding digital wallet service Calibra, has recently replied both via a public Facebook post and in a letter to Chairwoman Maxine Waters and members of the House Financial Services Committee to assuage their concerns and promised cooperation.
Earlier, Marcus in his official letter to the crypto community noted, that social media giant won’t have any special responsibility for the Libra Network and would not have access to any financial data from the wallet provider.
The head of the Messenger also emphasized that Libra should not be associated only with Facebook. He stressed, that each of 28 founding members of the Libra Association will be responsible for overseeing the network and have the same amount of power over it.
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