Quantcast
Connect with us

Facebook needs ‘very high standard’ for Libra coin: Mnuchin

Published

on

Facebook will need to meet “a very high standard” before it moves ahead with its planned digital currency Libra, US Treasury Secretary Steven Mnuchin said Monday.

Mnuchin said US regulators have already expressed concerns to Facebook about the plan for a global cryptocurrency, noting that these kinds of virtual coins have in the past been associated with money laundering and illicit activities.

ADVERTISEMENT

“Whether they’re banks or non-banks, they’re under the same regulatory environment,” Mnuchin told reporters at the White House, adding that Facebook “will have to have a very high standard before they have access to the financial system.”

Facebook last month unveiled its plans for Libra, widely regarded as a challenger to dominant global player bitcoin. Libra is expected to launch in the first half of 2020. It is designed to be backed by a basket of currency assets to avoid the wild swings of bitcoin and other cryptocurrencies.

Mnuchin said the US Treasury welcomes “responsible innovations” that can improve the efficiency of the financial system but added: “Our overriding goal is to maintain the integrity of the financial system and protect it from abuse.”

He said US regulators have met with Facebook officials on this question, and how Facebook can protect against the new virtual coin being used for criminal activity.

Commenting on Facebook’s claim that Libra could lower costs and help people without access to traditional financial services, Mnuchin said, “That’s fine (but) they’ve got a lot of work to do to convince us they can get to that place.”

ADVERTISEMENT

Mnuchin’s comments echoed concerns voiced by Federal Reserve Chairman Jerome Powell and regulators around the world, as well as by lawmakers set to open hearings this week on the plan by Facebook and its partners in the Libra project.

– Hearing set Tuesday –

AFP / NICHOLAS KAMM US Treasury Secretary Steven Mnuchin said Facebook will need to show its new digital currency Libra won’t damage the US or global financial system

Facebook will need to meet “a very high standard” before it moves ahead with its planned digital currency Libra, US Treasury Secretary Steven Mnuchin said Monday.

Mnuchin said US regulators have already expressed concerns to Facebook about the plan for a global cryptocurrency, noting that these kinds of virtual coins have in the past been associated with money laundering and illicit activities.

ADVERTISEMENT

“Whether they’re banks or non-banks, they’re under the same regulatory environment,” Mnuchin told reporters at the White House, adding that Facebook “will have to have a very high standard before they have access to the financial system.”

Facebook last month unveiled its plans for Libra, widely regarded as a challenger to dominant global player bitcoin. Libra is expected to launch in the first half of 2020. It is designed to be backed by a basket of currency assets to avoid the wild swings of bitcoin and other cryptocurrencies.

ADVERTISEMENT

Mnuchin said the US Treasury welcomes “responsible innovations” that can improve the efficiency of the financial system but added: “Our overriding goal is to maintain the integrity of the financial system and protect it from abuse.”

He said US regulators have met with Facebook officials on this question, and how Facebook can protect against the new virtual coin being used for criminal activity.

Commenting on Facebook’s claim that Libra could lower costs and help people without access to traditional financial services, Mnuchin said, “That’s fine (but) they’ve got a lot of work to do to convince us they can get to that place.”

ADVERTISEMENT

Mnuchin’s comments echoed concerns voiced by Federal Reserve Chairman Jerome Powell and regulators around the world, as well as by lawmakers set to open hearings this week on the plan by Facebook and its partners in the Libra project.

– Hearing set Tuesday –

AFP/File / Glenn CHAPMAN Facebook’s David Marcus, who heads the social network’s digital currency initiative, said he expects an extensive regulatory review of the Libra project

David Marcus, who heads Facebook’s digital wallet and blockchain efforts, said in testimony prepared for delivery Tuesday that he expects regulators to carry out an extensive review of the Libra project.

“The time between now and launch is designed to be an open process and subject to regulatory oversight and review,” Marcus was to say in his remarks, which were released by the Senate Banking Committee.

“We know we need to take the time to get this right. And I want to be clear: Facebook will not offer the Libra digital currency until we have fully addressed regulatory concerns and received appropriate approvals.”

ADVERTISEMENT

The companies behind Libra include payment giants Visa, MasterCard and PayPal, as well as ride-hailing apps Lyft and Uber.

Central bankers around the world have said they would carefully study the proposed currency and last week US President Donald Trump weighed in, saying, “I am not a fan of bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air.”


Report typos and corrections to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Breaking Banner

Trump staff sent home early as White House braces for another night of protests

Published

on

After a third night of unrest in Washington D.C., Mayor Muriel E. Bowser announced another curfew for Monday night, saying, "We’re prepared for multiple days of demonstrations.”  The curfew will begin at 7 p.m. Monday and run through Tuesday morning.

According to reports, the White House will be shutting down accordingly, with only the most senior staffers staying on.

"Sources tell me the White House told all staffers who don’t need to be there to leave by 4 pm ET today due to planned protests," CNN's Jake Tapper tweeted. "I’m told by a source that White House senior staff will continue working."

Continue Reading

Breaking Banner

Louisville police chief fired after mayor determines body cameras were off during David McAtee shooting

Published

on

On Monday, Louisville Mayor Greg Fischer announced that the chief of the city's police department has been relieved of duty, effective immediately.

The move comes after the body cameras of Louisville police officers involved in the fatal shooting of David McAtee, a local Black businessman, had not been active.

🚨 Mayor of #Louisville: The body cameras of those involved in the shooting last night that killed David McAtee were NOT active.

Continue Reading
 

Breaking Banner

LISTEN: Charlamagne Tha God clashes with ‘delusional’ Rush Limbaugh in debate over George Floyd’s killing and white privilege

Published

on

During an interview with Rush Limbaugh this Monday, Charlamagne Tha God called out the conservative radio host for his white privilege and asked him why he's choosing to speak out on George Floyd's killing while there have been countless examples of police violence against black people.

“I know that you’re going to disagree with me on this — to me this is not America,” Limbaugh said, adding that he thinks the U.S. is the greatest country in the world.

But according to Charlamagne, America is only great for some people.

“I think it’s easy for you to say because you’re a white male and that comes with a different level of privilege,” Charlamagne said. “And I do think America does work but it works for the people it was designed to work for. It doesn’t work for everyone else the way it works for you.”

Continue Reading
 
 
You need honest news coverage. Help us deliver it. Join Raw Story Investigates for $1. Go ad-free.
close-image