US Fed Reserve Chair: Facebook May Fail to Launch Libra in 12 Months
[ChainDD report] July 12 (ChainDD) At a hearing made by the US Senate Banking Committee on July 11, ,Jerome Powell, Chairman of the US Federal Reserve, said it requires patience and carefulness to review risks over Facebook proposed cryptocurrency Libra, so it may be unfeasible for Facebook to launch Libra in 12 months and need more time. This means Powell doubted whether Libra will go live next year as Facebook expects.
Besides questioning Libra’s feasibility in terms of timeline, Powell mentioned US dollar as a reserve currency. He expected US dollar has no short-term risks as the reserve currency but cannot keep the position forever.
According to ChainDD’s previous news, Powell said at a hearing before the US House Committee on Financial Services on July 10 that Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability. The Fed is coordinating with other central banks to solve these concerns.