The Chairman of the U.S. Federal Reserve (FED) Jerome Powell mentioned that we could see a return to an era where many different currencies operate at the same time. He said that during a speech on monetary policy before the U.S. House of Representatives Financial Services Committee. In addition to it, he claimed that Libra raises many serious concerns about privacy and other issues.
Powell Not Sure About Libra – Do We Return To An Era With Several Currencies?
Facebook’s recently launched cryptocurrency Libra seems to be questioned by many individuals and experts around the world. This time, Jerome Powell shared his worries about the future of this virtual currency and how it would affect the market.
During his testimony before the Committee, he said that Libra is currently raising serious concerns about privacy and other important issues.
On the matter, he commented:
“Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability.”
At the same time, he mentioned that he considers that this project cannot continue in the market unless these issues are addressed and solved. The digital currency is expected to be used as a means of payment among WhatsApp and Facebook Messenger users. Individuals can also pay for goods and services with it and it would have a governance structure with several companies from different countries.
During the second day of the testimony to Congress, Powell said that it is possible for Bitcoin to become a prevalent currency around the world but there has not been a widespread adoption that would show a trend into this direction. He has also mentioned that Bitcoin works in a similar way as gold, as a store of value.
He considered that if we see Bitcoin growing around the world, the United States would come to an era in which the country had many different currencies.
During these two days, Powell showed that there are several virtual currencies that could eventually become mainstream in the future. Although Libra has not yet been released to the market and Bitcoin is far from reaching widespread adoption, they have a real potential to change the world.
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