There are clear indications that Facebook’s ambition to launch its Libra cryptocurrency will not go unchallenged by the U.S’ most powerful financial regulator.
Jerome Powell, chairman of the Federal Reserve told the U.S, House Financial Services Committee on Wednesday at a hearing that:
“I just think it cannot go forward without there being broad satisfaction with the way the company has addressed money laundering.”
He was also explicit as regards Facebook’s chequered history of hacks and data leaks.
“Data protection, consumer privacy, all of those things will need to be addressed very thoroughly and carefully in a deliberate process that will not be a sprint to implementation,” he said.
This is the second time the Fed Chairman will be commenting on Facebook’s plan to launch Libra digital currency. Late last month, a group of Democrat House of Representative or Congress advised Facebook to halt its work on Libra until it meets with the house committee. While Facebook has not agreed to stop its development on the project, the tech giant said it is open to meeting with the lawmakers to discuss its plan on the project.