Jerome Powell, the head of the United States Federal Reserve, has said that he recognizes both potential benefits and risks to Facebook’s recently-unveiled Libra cryptocurrency project . Powell made his remarks during a press conference broadcast on PBS news hour on June 19.

During the conference, the Fed chair was asked whether he was concerned as to whether Facebook’s libra cryptocurrency could undermine the Fed and erode its power to influence the economy.

In response, Powell said he believed that society remains a long way from digital currencies replacing central bank currencies, and that the central bank was not too concerned about no longer being able to implement monetary policy because of them given the infancy of the digital asset class.

Powell confirmed that Facebook had reached out to discuss its project with the Fed, noting that the company has ostensibly:

“Made quite broad rounds around the world with regulators, supervisors and lots of people to discuss their plans and that certainly includes us. It’s something we’re looking at, we meet with a broad range of private sector firms all the time on financial technology and there’s just a tremendous amount of innovation going on out there.”

In addition, Powell said he believed there to be both potential benefits and risks particularly of a digital currency such as Facebook’s, which would have a prospectively large application.

He said he echoed the sentiments of Bank of England (BoE) governor Mark Carney in that he believes “we will wind up having quite high expectations from a safety and soundness and regulatory standpoint if they do decide to go forward with something.”

As to whether libra should come under any formal regulation as such, Powell clarified that:

“We don’t have plenary authority over cryptocurrencies as such. They play into our world through consumer protection and money laundering […]  but I would say that through international forums we have significant input into the payment system and [...] play an important role in the payment system here in the United States.”

Government officials worldwide have expressed a range of opinions on Facebook’s new token, which could have potential exposure to a combined 2.7 billion users each month.

Soon after the libra white paper was published, the chairwoman of the U.S. Financial Services Committee requested that Facebook halt development of the project. U.S. Senate’s Banking Committee is set to hear testimony about the project on July 16.

French Minister of the Economy and Finance Bruno Le Maire has said that the government intends to “ask for guarantees” from Facebook in regard to Libra.

Cointelegraph has also reported that the Chairman of the Russian State Duma Committee on Financial Market Anatoly Aksakov said that the country would not legalize the use of the token.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin market update: BCH/USD sellers catalyze the breakdown under $220

The crypto market is bleeding across the board. Major cryptos like Bitcoin and Ethereum fall overnight while Bitcoin Cash engaged the reverse gear during Wednesday’s European session. From an opening price of $226.97, BCH ascended to an intraday high of $227.76. 

More Bitcoin Cash News

IOTA price analysis: IOT/USD loses ground, moves within the recent channel

IOTA, the 17th largest digital asset with the current market value of $745 million, has been moving in a tight range recently. The coin has lost 1.8% of its value on a day-to-day basis amid global sell-off on the cryptocurrency market.

More IOTA News

Ethereum price prediction: ETH/USD collapses below $170.00 – Confluence Detector

ETH/USD surrounded $170.00 support amid massive sell-off on the global cryptocurrency market. ETH, the second digital coin has lost over 4% of its value in recent 24 hours to trade at $167.00 by press time.

More Ethereum News

Facebook’s Libra could be regulated by the SEC: The US Congress draft bill reveals

Facebook is yet to find a regulatory breakthrough for its proposed digital project, Libra. However, if the United States Congress goes ahead with the proposal to draft a bill describing stablecoins, Libra could quickly fall under the wings of the Securities and Exchange Commission.

More Libra News


Bitcoin Weekly Forecast: Nothing to crow about

Bitcoin (BTC) attempted a recovery above $8,400 and resumed the decline into the end of the week.

Read the weekly forecast