Tencent Technology News, after Facebook announced the plan for digital currency Libra, the company’s past record of protecting personal privacy, coupled with billions of users around the world, has triggered Libra in the world. Great controversy.
According to the latest news from foreign media, Powell, chairman of the US Federal Reserve Board (US Central Bank), said on Wednesday that Facebook’s plan to establish a digital currency for Libracoin could not be advanced until some serious concerns were resolved. His remarks put pressure on the plan and suppressed the price of the famous cryptocurrency bitcoin.
Strong comments from the most powerful financial regulators in the United States highlight the growing regulatory barriers to the proposed Facebook cryptocurrency, which has been closely watched by global policymakers.
“Libra coins raises many serious concerns about privacy, money laundering, consumer protection and financial stability,” Powell said in a semi-annual testimony on the monetary policy of the US House Financial Services Committee.
He later added that if these problems are not resolved, "I don't think this project can continue."
Powell said that any regulatory review of the project should be "patient and cautious". He pointed out that the existing rules do not apply to digital currencies.
He said: “This is not exactly in line with our financial regulatory system, and Libra coins do have a potentially systematic size. It requires careful research, so I firmly believe that we all need to come slowly. ”
Facebook spokeswoman Elka Looks said in an email: "We very much agree with the need for the Fed chairman to discuss the matter publicly. That's why we announced this news so long with the other 27 founding members of the Libra Coin Association, so that we can have a constructive discussion on this issue and get feedback. ”
Powell’s comments on the Libra coin hit the price of Bitcoin, and during his three-hour testimony, the price of Bitcoin fell sharply by 7%.
At the end of last month, bitcoin prices rebounded to nearly $14,000. Since June 18, Facebook announced plans to launch the Libra currency program, Bitcoin has risen more than 30%. As of 3 pm US time on Wednesday, Bitcoin traded at $12,268.99, down 2.4% on the day. During Powell’s attendance at the hearing, Facebook’s share price was also hit, but at the close, the stock basically recovered its lost ground, rising 1.3% to close at $201.89 per share.
It is unclear how the Fed will slow down the Libracoin program if the Fed is willing, because the regulatory status of the digital currency is not clear, but Powell’s point of view is important.
Facebook executives are scheduled to attend the hearing on this project in the US Congress later this month. Senior members of Congress have raised data privacy and other issues for the Libracoin program.
“Facebook's plans have raised serious concerns about privacy, transactions, national security and monetary policy in consumers, investors, the US economy and the global economy. “The House Banking Committee Chairman Maxine Waters said.
Powell said the Fed has set up a working group to track the project and is coordinating with central banks in other countries around the world. He also expects the US Financial Stability Oversight Committee to conduct an assessment.
Powell pointed out that as long as the relevant risks are identified, he will support financial innovation, but he said that Facebook has a huge social networking platform, which makes Libra coins different from other digital currency projects.
He said: "Facebook has billions of users, so I think they have the possibility of making digital currency widely available for the first time. ” Any problems with Libra's currency will rise to a systemic level due to the size of Facebook. & rdquo; (Tencent Technology Review / Cheng Hao)