ADVERTISEMENT

Fed governor criticizes Libra, calls it a threat to Fiat – Libra News

Must Read

Indian regulators postpone introducing the “anti-cryptocurrency” bill.

The Indian government earlier revealed that it is drafting a bill that would ban the use of all cryptocurrencies...

Chinese Regulators to focus on Crypto Mining Firms in Mongolia

China has been a significant sector for the process of cryptocurrency mining since the beginning. Over the years, China...

Digital Bazaar awarded with $200k by the U.S. Homeland Security

The adoption of blockchain has seen a massive surge in the past few months as more and more organizations...
Avatar
Saloni Sheelwant
Saloni Sheelwant treasures to research and write about the new startups and technologies thriving at a very fast pace.

Lael Brainard, the Federal Reserve Governor, called out on Libra, stating that the project would need to resolve many regulatory barriers before lifting off the ground. Brainard cites that stablecoins can be too successful that they can rival the traditional money. Libra, if launched, can be a threat to the central banks as it possesses high rates of adoption. The governor also took a shot at the debate over the merits of the US issuing a digital dollar.

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. 

Disclaimer: Coinnounce's views are not necessarily reflected in the articles published, and they are the sole representation of the author's opinions. Article's information should not be taken as investment advice. Risks are involved in cryptocurrency investments and trading. Readers are urged to carry out extensive research before making a decision.

Leave a reply

Please enter your comment!
Please enter your name here

Latest News

Indian regulators postpone introducing the “anti-cryptocurrency” bill.

The Indian government earlier revealed that it is drafting a bill that would ban the use of all cryptocurrencies...

More Articles Like This