Facebook's digital coin 'serious concern': US Fed Chair

Friday, 12 July 2019, 09:05 Hrs
cmt right
Comment Right
cmt right
cmt right
Printer Print Email Email

Washington - US Federal Reserve Chair Jerome Powell has raised "serious concern" over Facebook's upcoming digital coin 'Libra'.

Testifying before the House Financial Services Committee, Powell raised serious objections on Facebook cryptocurrency slated to arrive in 2020, the Wired reported on Wednesday.

"I just think it cannot go forward without there being broad satisfaction with the way the company has addressed money laundering" and other issues, Powell told the House Financial Services Committee.

Under Facebook subsidiary Calibra, the social networking giant has planned to introduce a digital wallet for Libra. The wallet will be available on Messenger, WhatsApp and as a standalone app and is expected to be launched in 2020.

"Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability," Powell said.

David Marcus, head of Calibra, tweeted: "Just caught up with comments from @federalreserve Chairman Powell at his @FSCDems Hearing, and I fully agree that legitimate concerns about @Libra_ should be addressed carefully and patiently, and that it shouldn't be rushed. This is why we shared plans early."

In a new letter sent to Facebook executives, US lawmakers have officially asked the social networking giant to cease all development of its Libra cryptocurrency.

Representative Maxine Waters, the chairwoman of the House Financial Services Committee, hinted at a move like this in June, shortly after the project was announced.

According to reports, Waters has repeatedly called on the social networking giant to pause development of Libra, though this is the first time she has done so as part of a formal letter to the company.

Facebook currently generates 99 per cent of its revenue from advertisements and digital currency would help it reach billions of users across products -- aiming to create another stable revenue stream and make cryptocurrecny-based payments mainstream.

Read More: Contractors secretly listening to Google Assistant recording
Gold rallies as interest-cut expectations weaken dollar

Source: IANS
Enterprise IT
Taking on streaming giants like Netflix and Hulu, Walt Disney Co. has announced it will ..
Imagine life being a romantic Bollywood song of the 90's. All those exotic frames punched into one..
Startup City
With cities growing rapidly and infrastructure not keeping pace, the daunting work com..
Actor Dhanush, whose last Hindi release was R. Balkis "Shamitabh", may be working in another H..
Automobile major MG Motors India on Wednesday said that it plans to manufacture electric vehicle E..
Les Roches Global Hospitality Education, a multi-national hospitality management institute, a..
To ensure uninterrupted functioning of the app in areas of low networks, Facebook-owned..
India's tea exports increased by 11.5 per cent to 17.93 million kgs in April this year aga..
Yamaha Music India has launched its first Indian keyboard PSR I500 under the 'Make in India' initi..