Jerome Powell, Chairman of the Federal Reserve, said that launching of Facebook’s digital currency, Libra can disturb the financial system if the currency is not at the highest standard.
According to him, for a platform like Facebook that has more than a billion people, a stable coin is essential, and its systematic working is equally important. He said this during a question-answer session in Zurich, Switzerland. He added that Libra would have to be held the highest in regulatory standards and supervisory expectations.
Powell added that he is a little unclear about how the regulatory system will help in protecting the public from all the risks that come with the cryptocurrency. Facebook’s cryptocurrency is a part of the Calibra, and it will be made available throughout the social media’s company’s products.
Powell assured people that central bank is not trying to become a hurdle for the currency but they wish to see a responsible financial innovation.