Fed Chair Jerome Powell Talks About Facebook’s Crypto Project During A Press Conference
- Jerome Powell said the monetary policy shouldn’t be affected by Cryptocurrencies
- Libra will be strictly regulated by agencies and governments all around the world
- The Chairman of the Federal Reserve of the United States Jerome Powell talked with the reporters about Facebook’s recently launched Libra. As reported by The Block, the central bank of the U.S. has already spoken to Facebook about Libra.
Cryptocurrencies Far From Impacting Monetary Policy
During the conversation with the journalists, Powell said that virtual currencies are still far from having any influence on monetary policy around the world. Facebook has recently released its blockchain and crypto project called Libra and enthusiasts are very excited about the future of this new digital asset.
There are individuals that consider that the virtual currency is going to have a positive impact on the Bitcoin network while others think that it is going to affect digital currencies as we know them today.
During the conversation that Powell had with journalists, he commented about this project:
“Facebook has made rounds with regulators around the world to discuss its plans, including us. There are benefits… but also risks we’re watching, and echo the statement [Bank of England] Governor Carney issued.”
The governor of the Bank of England Mark Carney commented that he was open-minded about Facebook’s Libra token but he has warned that mass adoption would make it subject to the highest standards of regulations if it wants to keep operating in the market.
Carney has also mentioned that Libra has a potential use case in countries where it is difficult and expensive to make payments and financial transactions. There are different countries that will be trying to regulate the digital currency and how it operates on their economies.
The Libra cryptocurrency is going to be backed by a basket of fiat currencies from different countries in order for it to have a stable value rather than having one that fluctuates at all times such as Bitcoin. Facebook is expected to be releasing the wallet for Facebook Messenger and WhatsApp as soon as the next year.