Fed Chair Powell says central bank has spoken with Facebook about Libra

Facebook • June 19, 2019, 3:49PM EDT

UPDATED: June 20, 2019, 9:25AM EDT

Federal Reserve Chairman Jerome Powell told reporters during his FOMC press conference today that the central bank has spoken to Facebook about Libra. Powell also reiterated that he believes cryptocurrencies are still a long way from impacting monetary policy.

"Facebook has made rounds with regulators around the world to discuss its plans [Libra], including us. There are benefits...but also risks we're watching, and echo the statement [Bank of England] Governor Carney issued."

Yesterday, BoE governor Mark Carney said he was open-minded about Facebook's Libra token, but warned mass adoption would force it "to be subject to the highest standards of regulation," the Financial Times writes (paywall).

Carney noted seeing the penitential utility of Libra, especially in countries where moving money is expensive and slow.

Going forward, the BoE will pay close attention to Facebook’s proposal and will coordinate efforts with the G7, the Bank of International Settlements, the Financial Stability Board and the IMF. Carney concluded Libra would not launch with an “open door” from regulators.

About Author

Ryan Todd is a research analyst at The Block where he focuses on the convergence of fintech and digital assets. Previously he worked at Deutsche Bank as an equity analyst covering consumer finance and payments companies, and also spent time at ConsenSys exploring the broader Ethereum ecosystem. Ryan holds a BS in Economics and Accounting/Finance from Florida State University, and MS Finance from Vanderbilt University.