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What Governments are saying about Libra – the Facebook currency

The US regulators and politicians expressed have expressed serious concerns close on the mid-2019 Libra announcement of Libra – the Facebook currency 

Maxine Waters, Chairperson of the United States House Committee on Financial Services Committee asked Facebook to halt the development and launch of Libra, citing a list of recent scandals and that “the cryptocurrency market currently lacks a clear regulatory framework”. 

The U.S. House Committee on Financial Services Democrats sent a letter to Facebook asking the company to stop development of Libra, citing concerns of privacy, national security, trading, and monetary policy. 

Jerome Powell, chair of the Federal Reserve, testified before Congress on 10 July that the Fed had “serious concerns” as to how Libra would deal with “money laundering, consumer protection and financial stability.”  

Among the many international voices of condemnation, Bank of England’s governor Mark Carney, says something I find wise, that there is a need to keep an “open mind” about new technology for money transfers, but “anything that works in this world will become instantly systemic and will have to be subject to the highest standards of regulation.”

[26]  Finance Watch puts it bluntly: “If created, Facebook’s Libra is predestined to become the next (and possibly the most difficult to regulate) too-big-to-fail financial institution. Imagine a global private entity managing a volume of assets potentially larger than many systemic banks combined, providing financial services to billions of people through a single click. The implications of creating such an institution are probably beyond any supervisory controls, and no one can tell in which world such “innovation” would take us.”

Posted on September 9, 2019

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