Lael Brainard who is a U.S. Federal Reserve Governor stated on Wednesday that Facebook’s proposed cryptocurrency Libra must overcome “a core set of legal and regulatory challenges” before it can be launched as a global stablecoin. She went on to say:
Stablecoin networks at global scale are leading us to revisit questions over what form money can take, who or what can issue it, and how payments can be recorded and settled
Without requisite safeguards, stablecoin networks at global scale may put consumers at risk
Cryptocurrencies already pose a number of risks to the financial system, and these could be magnified by a widely accepted stablecoin for general use
So it’s safe to say that Brainard is not a fan. The Federal Reserve is currently looking into a digital dollar while the ECB and PBoC are already taking steps to make a Central Bank Digital Currency (CBDC). The question the Fed need to ask themselves is, do they want to be left behind?.
Mark Zuckerberg did stand before the senate to represent the Libra Association. The reception he received was frosty, to say the least, and Maxine Waters, in particular, was not convinced. They Libra Association has stated they will not launch the stablecoin until all relevant regulators are satisfied and the official launch date has not been given.
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