Facebook Libra cryptocurrency a 'serious concern' for Federal Reserve, report says
The US' central bank is looking into Libra.
Corinne ReichertSenior Writer
Corinne Reichert (she/her) grew up in Sydney, Australia and moved to California in 2019. She holds degrees in law and communications, and currently writes news, analysis and features for CNET across the topics of electric vehicles, broadband networks, mobile devices, big tech, artificial intelligence, home technology and entertainment. In her spare time, she watches soccer games and F1 races, and goes to Disneyland as often as possible.
I've been covering technology and mobile for 12 years, first as a telecommunications reporter and assistant editor at ZDNet in Australia, then as CNET's West Coast head of breaking news, and now in the Thought Leadership team.
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.
"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," Powell said when asked about Libra by Rep. Maxine Waters, according to the Journal.
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.
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."
"Just caught up with comments from @federalreserve Chairman Powell at his @FSCDems Hearing, and I fully agree that legitimate concerns about @Libra_ should be addressed carefully and patiently, and that it shouldn't be rushed. This is why we shared plans early," Marcus tweeted Wednesday afternoon.
"Design of the Facebook currency has not been fully explained," Subhash Garg, India's Economic Affairs Secretary, told Bloomberg in an interview Saturday. "But whatever it is, it would be a private cryptocurrency and that's not something we have been comfortable with."