Economy

Facebook to Enter Financial World with Launch of Cryptocurrency

Facebook to Enter Financial World with Launch of Cryptocurrency

Jerome Powell, the head of the United States Federal Reserve, has said that he recognizes both potential benefits and risks to Facebook's recently-unveiled Libra cryptocurrency project. The new Libra coin claims to be safer, secure and less volatile as compared to other cryptocurrencies. They are focusing on countries like India and other nations where money transfer comes with exorbitant fees.

"Libra is the sign of balance, fair play and harmony, and I don't see a lot of that in Facebook these days", astrologer Angel Eyedealism added.

Wall Street loved the idea of Facebook's new digital currency, Libra, as the stock price soared in anticipation of Tuesday's announcement. But he underscored that the Fed's role in global regulatory groups, which may suggest that the USA central bank may have the influence on any regulations for Facebook's Libra debut.

Representative Maxine Waters, chairwoman of the US House Financial Services Committee, called for Facebook executives to testify before Congress and asked the company to halt development of Libra.

Continue your reading with the Financial Times' piece explaining why Libra is "blockchain, but without the blocks or chain" by digging in to the specifics of Facebook's plans, as outlined in its Libra white paper.

The plan has already come under fierce criticism from financial regulators and lawmakers.

More news: Jeremy Hunt and Boris Johnson are final two in Tory leadership race

"It is incumbent upon us as policymakers to understand Project Libra". "Under Section 79 of the Indian IT Act, Facebook is obligated to take "all due care" to ensure its network or platform is not used for illegal activities like dealing in cryptocurrencies in India". Bloomberg reports France's finance minister said the idea of a Facebook coin was "out of the question". An estimated 85 percent of Facebook users live outside the U.S.

"Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data", said Waters.

US Senator Sherrod Brown, who sits on the Senate Banking Committee, said he thought Facebook had become "too big and too powerful".

That appears to be part of the reason Facebook created a nonprofit oversight association to govern Libra.

The US Senate Banking Committee in a statement released Wednesday said that it will be holding a hearing on Facebook's cryptocurrency on July 16, 2019.

Some super wealthy people who control large corporations came up with a system independent of governments that they say will benefit poor people, and its objective is to move money around the globe.