Facebook’s crypto project, Libra, has gained another critique. The governor of Federal Reserve, Lael Brainard, took a critical call at Libra, commenting that the coin would need to solve numerous regulatory barricades before coming into play. In a speech delivered on October 16, Brainard highlighted how stablecoin projects raised complex regulations that at best could push forward the launch of Libra.
As per the governor, if the regulatory issues are left unsolved, they could imply elevated risk on consumers and the global banking order. Brainard sees great potential in the success of stablecoins that can stand in rivalry with the traditional currency. “If a large share of domestic households and businesses come to rely on a global stablecoin not only as a means of payment but also as a store of value, it could impact central banks’banks’ balance sheets,” stated Brainard.
Mentioning Libra, the governor recites the imminent vast adoption that will follow the coin if it launches. In conclusion, she states how Libra attracting the heightened level of scrutiny is no surprise.
Brainard also lighted the opinions on the US issuing a Central Bank Digital Currency – a digital dollar. She stated that the Fed would continue to consider the digitized dollar’s pros and cons.