U.S. Federal Reserve speaks on Facebook’s Libra

Several days after keeping mum on the unveiling of Facebook Inc’s Libra cryptocurrency project, the U.S. Federal Reserve has hinted on its direction and views on the project.

The Federal Reserve Chairman Jerome Powell said earlier today that it will hold Libra to a ‘high’ bar’

Facebook had announced its plan to launch its own cryptocurrency, moving that will see the tech giant processing payments to any part of the world.

“Libra’s a new thing; we are looking at it very carefully,” in a question and answer after he gave a talk at the Council on Foreign Relations in New York.

“Given the possible scale of it, I think that our expectations — from a consumer protection standpoint, from a regulatory standpoint — are going to be very, very high.”

“Authority for overseeing Libra is going to be in a number of places, but I think that the big picture is we are going to be looking really carefully at it,” he said.

While France, Italy have raised concerns on the security and regulatory concerns around Libra, Switzerland, the host to the Libra Association and the Bank of England have both expressed optimism about the digital currency.

Facebook said it will launch the cryptocurrency by the second half of 2020.