Economics
Fed’s Brainard Raises Red Flags Over Facebook’s Libra Project
- Says social network’s reach could make adoption of Libra fast
- Digital currencies could pose financial stability risks
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Federal Reserve Governor Lael Brainard warned of dangers that a digital currency proposed by social networking giant Facebook Inc. could pose to consumers and financial stability while offering a potentially valuable tool to criminals.
“Libra, like any stablecoin project with global scale and scope, must address a core set of legal and regulatory challenges,” Brainard said in the text of a speech she’s scheduled to deliver Wednesday in Frankfurt. “A significant concern regarding Facebook’s Libra project is the potential for a payment system to be adopted globally in a short time period and to establish itself as a potentially new unit of account.”