The FED opposes the launch of Libra

The FED opposes the launch of Libra

Jerome Powell, president of the US Federal Reserve, would have expressed himself against the will of Facebook to launch its own cryptocurrency. In his opinion the project Libra it would present too many controversial aspects which, if not clarified, would represent a sufficient reason to block the digital currency even before its birth.

Libra's announcement was welcomed by the entire virtual currency market, so much so as to contribute to a sudden surge in the value of Bitcoin. The statements of the FED executive would have had the opposite effect instead, causing an almost immediate contraction to the detriment of Satoshi Nakamoto's creature (whoever he is).

To motivate its positions, Powell would have referred to various problems, from the dangers to user privacy to the difficulty of protecting consumers in a sector that is still not very regulated, from the risks associated with money laundering activities to financial stability that could not be guaranteed from a completely private initiative.

In reality he would not be opposed to the birth of a new cryptocurrency, his speech would in fact be based on the timescales envisaged by Mark Zuckerberg and partners, considered too short. The intention should be to postpone Libra's debut to analyze its operation in detail and assess its compliance with the current regulatory framework.

For their part, the spokesmen of Menlo Park would have responded to these doubts by recalling that Facebook is not the only company involved in the project, there are in fact other 27. In addition, Libra's announcement would have been made well in advance precisely to collect feedback of all stakeholders and clarify any doubts expressed by the supervisory authorities.

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