On Wednesday, Federal Reserve Governor Lyle Brainard criticized Libra, who said a Facebook-led project would have to deal with a number of regulatory difficulties before it gets underway.
Speaking on Wednesday at the Digital Money Future Forum in Washington, DC, Brainard shows how global-regulated projects have sprung up that could best stop the expected startup of 2020, and if not. Customers and international banking who are at increased risk.
problem? Stablecoins can be very successful – they may even compete with money issued by the central bank.
“If most households and businesses rely on Global StableLink not only as a form of payment but also as a store of value,” it could affect central bank balances, “Reynard said.
Libra in a unique position to achieve this, with direct access to Facebook’s gargantuan customer base – “one-third of the global population,” he said; And probably more so, Libra plans to make it accessible to people on social networks as well.
But for all potential customers, Brainard doubted that there were regulatory responses.
These consumers may not exercise their digital wallet rights, he said. The regulators also did not create the consumer protection shield around traditional bank accounts for the purpose of responsible for financial institution fraud in deposit insurance.