Copy link
Increase text size
Decrease text size
Link copied

U.S. Federal Reserve Governor expresses concern about Libra’s massive global reach

U.S. Federal Reserve Governor Lael Brainard said that Libra’s two billion reach has the potential for rapid adoption, which could pose risks down the line.

Image: Unsplash

Fri, 20 Dec 2019, 10:40 am UTC

U.S. Federal Reserve Governor Lael Brainard has raised concerns about the impending launch of the Libra stablecoin currently being developed by Facebook and its associates. Several governments have already expressed their apprehension about the stablecoin and how it could drastically change the worldwide financial ecosystem.

At the moment, Facebook CEO Mark Zuckerberg has yet to convince U.S. regulators to support Libra and it appears that more resistance has piled up against its launching. Brainard highlighted several concerns about the stablecoin, one of which is its global reach and how it can quickly be adopted by Facebook’s 2.3 billion users.

“A significant concern regarding Facebook's Libra project is the potential for a payment system to be adopted globally in a short time period and to establish itself as a potentially new unit of account. Unlike social media platforms or ridesharing applications, payment systems cannot be designed as they develop, due to the nexus with consumers' financial security. This is why in many jurisdictions, including the European Union, there is a regime to oversee retail payment systems,” Brainard said.

Libra moves forward despite resistance

Even though Zuckerberg told U.S. Congress that Libra will not be launched unless regulators approved of it, the initiative is still moving forward. The association behind Libra’s development is still hard at work in placing nodes for the network, with plans of putting up 100 nodes for its mainnet.

Global regulators are still trying to grapple with these disruptive changes, complicated by the fact that stablecoins – and cryptocurrencies, for that matter – aren’t restricted by physical borders. France and Germany have already said that Libra will be blocked in their regions, while the European Union is still trying to create a sound approach on how to deal with Libra and other stablecoins.

Libra pushes CBDC development

Due to the rapid financial evolution, multiple countries have already worked on a central bank digital currency (CBDC) in an attempt to shield itself from Libra and its kin. Brainard also touched upon this subject on her remarks, saying:

“The prospect of global stablecoin payment systems has intensified the interest in central bank digital currencies… Proponents argue that central bank digital currencies would be a safer alternative to privately issued stablecoins because they would be a direct liability of the central bank. A more relevant question may be whether some intermediate solutions may be able to offer the safety and benefits of real-time digital payments based on sovereign currencies without necessitating radical transformation of the financial system,” Brainard said.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Moses
  • 2020.06.24 23:39:15
I am a cryptocurrency trader and i make over 200% daily, If you are interested,i can teach you how to trade and also help you achieve your goal in life with crypto i can turn
$4500 into $35000 in less then four weeks,now that bitcoin has low prices...please note that cryptocurrency trading is bitcoin unlike binary and Forex,bitcoin is traded for altcoins also you can reach to me if you are new to bitcoin and to give you more info and guideline on how to invest smartly, this is opportunity life time knocking on your door inbox me for more me on whatsapp :+12067425358 happy new year to you all ...........................................................................................................................................................
  • 0
  • ·
  • 0
  • Bitcoin (BTC) $11,733.70 (+1.84%)
  • Ethereum (ETH) $435.82 (+10.40%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Chainlink (LINK) $16.92 (-1.31%)
  • Bitcoin Cash (BCH) $293.90 (+3.56%)
  • Bitcoin (BTC) $11,733.70 (+1.84%)
Feb 21, 2020 (Friday)
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
Brazil to launch new payment system in response to cryptocurrencies
Digital currency exchange Coinbase Pro lists Kyber Network token
Norwegian Air to soon start accepting crypto payments
Swedish central bank begins CBDC pilot with Accenture
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
Telecom companies complete cross-carrier mobile payments using blockchain
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
South Korean ICO project discontinued, to return $7.5M to token holders
Samsung maintains crypto support in soon-to-launch Galaxy S20
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
Coinbase becomes first crypto company to receive Visa principal membership
Dubai Economy and six banks launch KYC Blockchain Consortium
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.