US Fed Chair: Facebook’s Stablecoin will Face High Regulatory Requirement and it Impact on Monetary Policy isn’t Too Concerned
[ChainDD report] June 20 (ChainDD) In his press conference on June 19, Jerome Powell, the chairman of US Federal Reserve (Fed), namely the US central bank, revealed Facebook has discussed with Fed officials on its stablecoin Libra. He is not too concerned about Libra’s impact on Fed’s ability to implement monetary policy.
While claiming “digital currencies are in their infancy”, Powell noted Libra is something Fed needs to look at and it has potential benefits as well as potential risks, especially a currency could have large applications. “So I would echo what (UK’s central bank) Governor Carney said which is that we will wind up having quite high expectations from a safety and soundness and regulatory standpoint if they do decide to go forward with something.”
Powell said Fed doesn’t have “plenary authority over cryptocurrencies”, but he stressed Fed can have a role in international regulation group, suggesting Fed could contribute for regulations unveiled after Libra goes live.
According to ChainDD’s previous news, Carney commented Libra that everything in the crypto world has to comply with the highest standard of regulation. Carney argued “we need to have an open mind” on a technology that can boost cross-border money transfers. He then added regulators will closely look at Libra in a coordinated way at international organizations including G7, IMF, Bank for International Settlements and Financial Stability Board.