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Fed’s Brainard: Facebook’s Scale is the faces and the ‘core-set’ of legal requirements

FILE PHOTO: A small piece of a toy figure standing on the representations of the virtual currency in the front end of the Scale, the logo in this illustration picture the 21 of June, 2019 at the latest. REUTERS/dado Ruvic/Image/File Photo

(Reuters) – Federal Reserve Governor Lael Brainard was launched in the american film industry, at Facebook’s Scale, digital currency project on Wednesday, he said, compared with a core set of legal and regulatory challenges”, including clarity as to what it would be like to be bound to a single basket of underlying assets.

Facebook’s concept of the monitor as a “stablecoin” a digital currency pegged to a government-supported funds, or any other audio assets in order to avoid the wild swings of the pure cryptocurrencies such as bitcoin remains unproven, Brainard said, with an uncertain set of rights the consumer has.

‘What do Facebook, the Scale of the other, as it were, to go further, it is one of the most active members of the network, that is, more than one-third of the population of the world is the creation of a digital currency is opaquely tied to a basket of foreign currencies,” Brainard said in remarks prepared for delivery at a conference to be held in Frankfurt, germany. “Without adequate safeguards, stablecoin networks on a global scale, consumers may be in danger.”

Her comments suggest that Facebook and the Scale of project is still to gain traction amongst the most important regulatory bodies. It is intended to be a consortium of companies that would be, once again, the digital currency with hard assets, the balance has suffered other setbacks, with the withdrawal of major payment companies such as Paypal, visa, Mastercard, and Visa.

Central banks around the world to discuss how to manage the growth of the digital finance technology and, in particular, distributed general ledger systems, which is used by bitcoin. Some analysts believe it is inevitable that central banks will lead to the issue of the digital currencies of their own countries.

That has the potential to reduce the cost and the time required to send the money, Brainard said, the technology does have its advantages. But, she said, there are also benefits that go hand in hand with the current legislation” on the basis of the circulation of physical cash.

Cryptocurrencies, ” she said, still has to clear hurdles, including the possibility of fraud, and to their use for the purpose of money laundering. Identity theft and fraud losses related to the cryptocurrencies are estimated to be more than doubled, to about $4.4 billion in 2019 from $1.7 billion in the previous year, Brainard said.

“Given the stakes, a global payments network, it can be expected that they will meet the high threshold of the laws, regulations and administrative safeguards for the launch of the operations,” she said.

Reporting by howard Schneider; Editing by Leslie Adler

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