Facebook Talked to the Fed About Libra, Chairman Powell Says
Fed chair Jerome Powell was asked about Facebook's Libra cryptocurrency during a press conference Wednesday.
The central bank is expanding the role of its Retail Payments Manager to include digital currencies, stablecoins and distributed ledger technologies as part of a new hire.
Federal Reserve governor Lael Brainard delivered a sharp critique of Libra, which would need to resolve many regulatory hurdles before going live.
The Fed warned that a stablecoin crisis could wreak havoc on the global economy and outlined the steps issuers must take to protect the status quo.
"We are concerned that the primacy of the U.S. Dollar could be in long-term jeopardy from wide adoption of digital fiat currencies."
The ex-official pushed back at a suggestion from the chief of the Bank of England that a Libra-like crypto should replace USD in global markets.