Federal Reserve Chairman: Don't worry about the cryptocurrency Libra will replace legal tender

According to CCN, Fed officials and Facebook discussed the Libra project. Federal Reserve Chairman Jay Powell said at a press conference on June 19 that the Fed is not worried that Libra, the cryptocurrency, will replace fiat money. He said:

Digital currency is in its infancy and there is still a long way to go. Basically, I am not too worried that the US central bank will no longer be able to implement monetary policy due to digital currency or cryptocurrency.


(Source: Pixabay )

At the same time, the Fed will not include the Libra project that regulates Facebook on the agenda because the Fed does not have such power.

We do not have full authority to regulate cryptocurrencies. Only when it involves consumer protection and money laundering will it enter our jurisdiction… However, I want to use an international forum to declare that the Fed has invested significant resources in the payment system and is playing in the US payment system. Important role.

Libra has potential advantages and potential risks, especially as a currency that can be used for a large number of applications.

The Fed chairman also responded to a recent comment by Bank of England Governor Mark Carney, who said:

If Facebook decides to move forward, the Fed will have high expectations from a regulatory perspective such as security and robustness.

Powell admits that the Fed often meets with private companies because of its financial technology program, and it is not the only government agency that meets Facebook.

Facebook has conducted a wide range of surveys around the world, and has discussed their plans with regulators, regulators, and many others, and of course we include them. This is what we are concerned about. We have been meeting innovative private companies in the financial technology arena.