Federal Reserve Chairman Jerome Powell expressed concerns about Facebook’s plan to create their cryptocurrency payment network while testifying before the Senate Banking Committee on Thursday, according to The Wall Street Journal.
The comments foreshadow a lot of future regulatory and government scrutiny over the innovative new cryptocurrency by Facebook named Libra.
Powell said, “I think we agree that Libra raises a lot of serious concerns, and those would include around privacy, money laundering, consumer protection, financial stability. Those are going to need to be thoroughly and publicly assessed and evaluated before this proceeds.”
The committee spent much of their time questioning Powell about Libra and a handful of other companies. Facebook is planning to have the coin pegged to a basket of government currencies that users can then send to each other electronically and use it to make internet purchases. Mr. Powell further expressed doubts about the timeline that Facebook has announced when they will release Libra.
Many economists believe that Libra has the potential to disrupt markets unlike any cryptocurrency before because of its potential for widespread adoption.