Head of the Central Bank of the USA says there is no agency to regulate Libra from Facebook
The man behind the US Federal Reserve, Jerome Powell, said in a statement to the Senate that there is no agency that can stand and monitor what Facebook plans to do with its cryptocurrency called Libra.
His Senate hearing made it clear that like everything else in government, the head of the US central bank. he is not sure how the regulators will handle Facebook Inc.'s plan for a digital currency called Libra.
Powell reiterated concerns about the risk posed by Facebook's plans for the global economy, because of the potential use of the Libra cryptocurrency to promote money laundering and the problems of financial instability, in addition to the usual concerns about privacy that in other Opportunities Facebook has hinted.
"The privacy rules that we apply to banks, we have no authority to apply to Facebook or Libra," said Jerome Powel.
Powell told the chairman of the Senate committee, Mike Crapo of Idaho, that the government might be forced to create a new regulatory body to address the problem posed by Facebook with its cryptocurrency.
He also warned that it will be uphill for the government and its regulatory agency to resolve all concerns about Libra, so close to the launch date proposed by Facebook for next year, warning of an 'advance for implementation'.
This is Powell's second hearing in a week about concerns about Libra, from privacy to financial stability. Last Wednesday, Powell testified before lawmakers at a hearing on the House Financial Services Committee in Washington.
On that occasion, Powell said that concerns about the Facebook project should be addressed in a thorough and public manner before continuing.
Prices for crypt assets rose in June after Facebook announced plans to launch its own digital currency called Libra, which the company expects will one day be traded as the dollar. Since then, legislators have been dedicated to studying in depth the threats that a cryptocurrency implies for a potential market of users of 2 3 of the world population.
Engineer and passionate about Blockchain and Bitcoin technology since 2009.
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