The US Federal Reserve, America's most powerful financial regulator, expressed concerns, on Wednesday, July 10th, about Facebook's planned digital currency, dubbed "Libra," saying it "cannot go forward" without addressing raised concerns, Reuters reported.
"Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability," US Federal Reserve Jerome Powell said during his semi-annual testimony on monetary policy before the US House of Representatives Financial Services Committee.
"It's something that doesn't fit neatly or easily within our regulatory scheme, but it does have potentially systemic scale," he said. "It needs a careful look, so I strongly believe we all need to be taking our time with this."
Facebook spokeswoman Elka Looks said in an email, "We are very much aligned with the Chairman around the need for public discourse on this," adding, "This is why we, along with the 27 other Founding Members of the Libra Association, made this announcement so far in advance, so that we could engage in constructive discourse on this and get feedback."
The strong comments from Powell about the Libra dented the price of the original cryptocurrency bitcoin. During his testimony that lasted for three hours, the currency fell as much as 7%.