According to FTC Commissioner, the impending Facebook led Libra project should be reason enough for the US Federal Reserve to develop its own instantaneous payments system, CoinDesk reports.
Rohit Chopra, a sitting commissioner of the US Federal Trade Commission, in a letter to the Federal Reserve’s board, expressed his support for the recently mooted FedNow Service which is said to be an instantaneous payment system that will operate 24/7.
In the letter, Chopra urged the Fed to move with speed and implement the proposal before other private systems like Libra are launched. Chopra joined the bandwagon of senior government officials who have reservations about Libra. The commissioner alluded that Facebook is trying to become a shadow worldwide central bank and this should not be taken lightly by the regulators. He explained that the oversight role of the Fed was at danger if the project is allowed to launch in its current form where details are still scanty.
Chopra stated that he was supporting the stands taken by both the Fed chair and the governor on Libra who have argued that the crypto project poses risks to the global financial sector.
The Commissioner opined that coming up with a payments system that is controlled by a government agency like the Fed was the best option. He explained that without considering whether or not the Libra project will take off or not, the intervention by the Fed with the FedNow Service was timely.
The FTC commissioner explained that the market was ready for instantaneous payment solutions citing the frustrations brought about by the high banking fees. He added that the current real-time technologies are spreading at a fast rate and it was time the Fed took advantage of the market dynamics.
According to Cointelegraph, the Federal Reserve has been working on the FedNow platform since last year but the details are still scanty as the public came to know about it in August this year. The project is expected to be launched in 2024 and it is unclear whether it will be built on blockchain technology.