Fed director: Libra faces "a series of core legal and regulatory challenges", including how to link to underlying assets

According to foreign media today, Fed director Lael Brainard launched an attack on Facebook's Libra digital currency project on Wednesday, saying it faces "a series of core legal and regulatory challenges", including how to interact with a series of Underlying assets.

libra-4284008_1280

Image source: Pixabay

Brainard said that Facebook's Libra concept is "stable currency" (a digital currency associated with a government-backed currency or other sound asset to avoid drastic fluctuations in pure cryptocurrencies like Bitcoin), which has not yet It was confirmed that the rights of consumers were not clear.

Brainerd said in preparation for a conference in Frankfurt,

"If it continues, what sets Facebook Libra apart is that a network of active users representing more than a third of the world's population is combined with the issuance of private digital currencies that are opaquely tied to a basket of sovereign currencies. If Without the necessary safeguards, the global stablecoin network could put consumers at risk. "

Her remarks suggest that Facebook's Libra project has not yet received attention from major regulators. As an alliance of conglomerates, the alliance will back digital currencies with hard assets, but with the withdrawal of major payment companies such as Paypal, Mastercard and Visa, Libra has suffered other setbacks.

Central banks around the world are debating how to manage advances in digital financial technology, especially the distributed ledger system used by Bitcoin. Some analysts believe that the central bank will eventually inevitably issue its own digital currency.

Brainard said that this technology has the potential to reduce costs and speed up remittances, and indeed has advantages. But she said that based on the physical cash issuance, "the current arrangement is also good."

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Deeply dig the death of Gatehub

On June 1, XRP Forensics discovered that 201,000 Swiss rupiah (transaction F6E9E1385E11649A6C2F88723A821AF209B5403088...

Market

The ultimate way out of cryptocurrency exchanges: decentralization (below)

The full text is brief: Alicoin|Exclusive view With the endless stream of asset security cases such as hacking and se...

Blockchain

6 pictures tell you about the development status of the Asian cryptocurrency market

Author: cryptanalysis CoinGecko company co-founder Bobby Ong translation: block rhythm BlockBeats-HQ Recently, at the...

Blockchain

Hong Kong's HashKey is Leaving its Mark on Retail with a Sleek Trading App, and Brace Yourselves for the Arrival of the HSK Token!

HashKey, the Hong Kong-based cryptocurrency exchange, has officially launched its trading app, marking its venture in...

Blockchain

Discussing the SEC's lawsuit against Binance: Years of regulatory balance disrupted, optimistic about the final outcome

Currently, the SEC and Binance's feud only reflects one fact: the imbalanced "ambiguous" regulatory relationship in t...

Opinion

Bloomberg Thousands of Words Uncover How SBF's Elite Parents Helped Him Build a Cryptocurrency Empire?

A tall building rises from flat ground, and the success of FTX is not the result of one person's efforts. With the ba...