Bitcoin Prices Tumble as Fed Chief Raises Concerns About Facebook’s Libra
Bitcoin costs fell sharply on Wednesday and Thursday after Federal Reserve chief Jerome Powell stated he had “critical issues” about how Fb’s (FB – Get Report) proposed new world cryptocurrency would function.
Powell stated in testimony earlier than Congress on Wednesday that “Libra raises critical issues relating to privateness, cash laundering, client safety, monetary stability…These are issues that must be totally and publicly addressed.” Powell stated a working group had been created to assist examine these points.
Fb introduced its plans for Libra in June and the information helped drive the value of bitcoin and different cryptocurrencies increased as Libra is being seen as driving additional adoption of bitcoin and blockchain applied sciences.
The worth of bitcoin has fallen nearly eight% to $11,793 over the previous day, after piercing the $13,000 mark early on Wednesday. Bitcoin costs have greater than tripled for the reason that starting of this 12 months.
Powell’s feedback on Wednesday got here in response to questions from members of the Home Monetary Providers committee, and he made related remarks on Thursday morning earlier than the Senate Banking Committee.
Quite a lot of politicians within the U.S. and overseas have been important of Fb’s plans for Libra. Maxine Waters, chairwoman of the Home Monetary Providers committee, has stated plans to roll out Libra must be halted pending a better take a look at the problems it raises. And the Financial institution of England governor Mark Carney stated on Thursday that Libra wanted to be “rock-solid” earlier than it could possibly be allowed to launch.
“If you’re a systemic cost system, you need to be on on a regular basis. You may’t have teething points, you possibly can’t have individuals dropping cash out of their wallets,” Carney stated.
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