Facebook's cryptocurrency raises 'serious concerns'- Powell

Credit: Reuters Studio
Published on July 10, 2019 - Duration: 01:54s

Facebook's cryptocurrency raises 'serious concerns'- Powell

U.S. Federal Reserve Chairman Jerome Powell said on Wednesday that Facebook's plan to build a digital currency called Libra "cannot go forward" until serious concerns were addressed.

Rough Cut (no reporter narration).

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Facebook's cryptocurrency raises 'serious concerns'- Powell

The strong comments from the head of the U.S. central bank, the country's top financial regulator, adds to misgivings about the project, which has already produced strong skepticism among top policymakers across the globe.

"I don't think that the project can go forward ... without there being broad satisfaction with the way the company has addressed money laundering, all of those things," Powell said in an appearance before the U.S. House of Representatives Financial Services Committee.Powell said the digital currency project, announced by the social media giant in June, raised "serious concerns" for regulators." Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability," he told the committee.

"These are concerns that should be thoroughly and publicly addressed." Powell said any regulatory review of the recently announced project should be "patient and careful."He said the Fed has established a working group to follow the project and is coordinating with other central banks across the globe.

He also expects the U.S. Financial Stability Oversight Council, a panel of financial regulators, will also review the idea.

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