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

From EOS, Sun Yuchen and Ownen Cong, ADA founder Charles Hoskinson took turns to diss it again.

The dilemma of EOS seems to be far from cooling. Block.one's June conference did not release "disruptive&qu...

Market

Bitcoin, Ethereum, Solana, Binance Coin, XRP, Cardano, Avalanche, Dogecoin, Chainlink, Polkadot price analysis for 2/16

Bitcoin's strong upward momentum may encounter resistance around $52,000, but any potential decrease is expected to b...

Market

Emerging economies in Africa, South Asia, and Southeast Asia are leading the global trend of cryptocurrencies.

Emerging markets offer unique opportunities for the development of cryptocurrencies and blockchain technology.

Market

Bitcoin Hits $45,500 as Bulls Continue to Dominate

Bitcoin's strong price performance persists as it faces a crucial challenge to reach $45,000.

Blockchain

Cardano (ADA) Adoption Surge: A Bullish Sign for Future Price Levels 🔥💰

Exciting possibilities lie ahead for Cardano (ADA) as it shows promising signs of surpassing current price levels, ba...

Blockchain

Cardano (ADA) Poised for a Bullish Surge: Analysts Optimistic

Numerous analysts are highly optimistic about Cardano (ADA) and predict a potential bullish market surge in the near ...