Federal Reserve Governor Blasts Facebook’s Libra Currency

Turnbull wants Zuckerberg to answer questions in Australia
AFP

U.S. Federal Reserve Governor Lael Brainard strongly criticized Facebook’s digital currency, Libra, on Wednesday. Brainard argued that Facebook’s digital currency project will face numerous regulatory challenges before it could be considered viable for public use.

According to a report by Reuters, U.S. Federal Reserve Governor Lael Brainard is taking aim at Facebook’s digital currency project, Libra.

Brainard’s remarks on Libra did note that Libra would have a substantial advantage over other digital currencies due to its access to Facebook’s multi-billion user platform. However, Brainard went on to say that digital currencies like Libra could put consumers at risk when they are used on a global scale.

“What would set Facebook’s Libra apart, if it were to proceed, is the combination of an active-user network representing more than a third of the global population with the issuance of a private digital currency opaquely tied to a basket of sovereign currencies,” Brainard said. “Without requisite safeguards, stablecoin networks at global scale may put consumers at risk.”

In October, Breitbart News reported that Libra had suffered a major setback when companies like eBay, MasterCard, and Stripe ended their relationships with Facebook’s digital currency project.

Libra co-creator David Marcus said in October that he remains optimistic about the future of Libra despite the setbacks.

“I would caution against reading the fate of Libra into this update. Of course, it’s not great news in the short term, but in a way it’s liberating. Stay tuned for more very soon. Change of this magnitude is hard. You know you’re on to something when so much pressure builds up,” Marcus tweeted.

Stay tuned to Breitbart News for more updates on this story.

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