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Fed's Brainard: Facebook's Libra faces 'core set' of regulatory hurdles


steven36
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(Reuters) - U.S. Federal Reserve Governor Lael Brainard launched a broadside against Facebook’s Libra digital currency project on Wednesday, saying it faces a “core set of legal and regulatory challenges” including clarity about how it would be tied to some basket of underlying assets.

 

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Facebook’s concept of Libra as a “stablecoin” - a digital currency linked to government-backed money or other sound assets to avoid the wild fluctuations of pure cryptocurrencies like bitcoin - remains unproven, Brainard said, with an unclear set of rights for consumers.

 

“What would set Facebook’s Libra apart, if it were to proceed, is the combination of an active-user network representing more than a third of the global population with the issuance of a private digital currency opaquely tied to a basket of sovereign currencies,” Brainard said in remarks prepared for delivery at a conference in Frankfurt. “Without requisite safeguards, stablecoin networks at global scale may put consumers at risk.”

 

Her remarks suggest that Facebook’s Libra project has yet to gain traction among key regulators. Intended as a consortium of companies that would back the digital currency with hard assets, Libra has suffered other setbacks with the withdrawal of major payments companies like Paypal, Mastercard and Visa.

 

Central banks globally are debating how to manage the advance of digital finance technology, particularly the distributed ledger systems used by bitcoin. Some analysts feel it is inevitable that central banks will ultimately issue digital currencies of their own.

 

With the potential to lower the cost and up the speed of transmitting money, Brainard said the technology does have advantages. But she said there are also “advantages associated with current arrangements” based on the issuance of physical cash.

 

Cryptocurrencies, she said, still must clear hurdles including the possibility of fraud and their use for activities like money laundering. Theft and fraud losses associated with cryptocurrencies are estimated to have more than doubled to around $4.4 billion in 2019 from $1.7 billion the year before, Brainard said.

 

“Given the stakes, any global payments network should be expected to meet a high threshold of legal and regulatory safeguards before launching operations,” she said.

 

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Cryptocurrencies, she said, still must clear hurdles including the possibility of fraud and their use for activities like money laundering. Theft and fraud losses associated with cryptocurrencies are estimated to have more than doubled to around $4.4 billion in 2019 from $1.7 billion the year before, Brainard said.

Would have been nice of her to say also about the amount of money involved in fraud and activities like money laundering in the standard banking system, i.e. not related to cryptocurrencies. Even better, a percentage of the total amount of money these systems deal with. Raw numbers mean nothing.

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29 minutes ago, mp68terr said:

Would have been nice of her to say also about the amount of money involved in fraud and activities like money laundering in the standard banking system, i.e. not related to cryptocurrencies. Even better, a percentage of the total amount of money these systems deal with. Raw numbers mean nothing.

If it not related to Libra  it's off topic! You ever hear  of  doing some research of your own ? Money laundering and crap  is why money is already relegated . People go to jail  for it all the time. But as long as they don't get caught  is not publishable .

 

Some countries were they are big at laundering they have a economy like Mexico while people in Goverment are the richest people in the world , Very little is known about them because they would kill you  if you messed with there privacy.  That's  always been the biggest risk  for crossing  people who gets rich from laundering you will end up dead . It easy to say behind your keyboard they should expose them,  but most people have been paid to look the other way and if they talk they get whacked and it dont matter if they go to prison,  they will have them killed in there. :lmao:

Edited by steven36
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3 minutes ago, steven36 said:

If if not related to Libra  off topic!

Fair enough, but then what she said is off topic too. Libra is a project of digital currency, let's speak about libra only; no point adding crytocurrencies that libra is not and specifically associating cryptocurrencies with fraud and money laundering as if these things are not existing in the standard system. AFAIK this has nothing to do with libra itself.

12 minutes ago, steven36 said:

But as long as they don't get caught  is not publishable.

And it's likely not entering into the statistics.

As U.S. Federal Reserve Governor she could present the whole situation, for both systems, without to stigmatize cryptocurrencies. Or maybe she said more but reuters cut that (?).

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1 hour ago, mp68terr said:

As U.S. Federal Reserve Governor she could present the whole situation, for both systems, without to stigmatize cryptocurrencies. Or maybe she said more but reuters cut that (?).

Look at all the stuff Al Capone did and the  only thing they could catch him on was not paying taxes . Well today you  have people who put money in off shore  accounts were is not taxable and they pay there taxes aboard  . So they have nothing on them so they have to  make new laws to control them .

 

Big Tech  is the new Mafia  , You have to pay  them to do anything online just like you had to pay the Mafia to run a businesses  back in the day also they controlled   Drinking , Drugs  Prostitution and Porn that why they have legalize some of it and trying to  legalize more of it,  so the  Goverment  can regulate it.  Back in the  60s - early 80s  the streets were the wild west .  The  government got tired  of it and stopped most of it. What's happening to the internet  it's always been the Wild West... it already happen to cable TV , satellite  and Big Telco  it's already regulated by the Goverment.

 

Today  They tech giants like PornHub parent  company  controls Porn like the Mafia back in the day did so it's not  very regulated because the internet was invented and open a new avenue of money . It's not like drinking and gambling in the USA that is very regulated  . but the UK  try to regulate it more and failed and now AU is trying to regulate porn as well. Well Crpyto is a new avenue of money they dont want  the Ad mafia to control  it like they already control most everything online thats legal .

 

Google  , Apple , Amazon  get paid a cut for everything is in there  walled gardens .Apple tries there best to make it  not work if you download outside of there's and if you try  make a app for android  and you are A big company .Google researchers will  run a security scandal on you for not paying them , that  no different than the mafia breaking someone legs are telling a reporter something bad about  you . And Google and Facebook harvest you data they  have more info than the FBI  does the law goes to them for info,.  Google is always  finding stuff wrong with stuff they can't make money on  because they make trust ware  that is pseudo trust. But people are to blind for the forest to see the trees we live in a Google and Facebook we trust  world and people believe everything they read in the Google censored mainstream news.   :tooth:

 

No Goverment  is going to allow any business  that think are more powerful than  the Government  to  do as they please  because in the end the goverment makes the laws and will win.

 

 

Edited by steven36
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  • 2 weeks later...
On 12/18/2019 at 10:41 AM, mp68terr said:

And it's likely not entering into the statistics.

 

On 12/18/2019 at 10:00 AM, steven36 said:

Some countries were they are big at laundering they have a economy like Mexico while people in Goverment are the richest people in the world , Very little is known about them because they would kill you  if you messed with there privacy. 

If you want to read  up on  what im  talking about do research  on the  Panama Papers

Malta car bomb kills Panama Papers journalist

https://www.theguardian.com/world/2017/oct/16/malta-car-bomb-kills-panama-papers-journalist

 

 Four people charged with fraud over Panama Papers

https://international-adviser.com/four-people-charged-with-fraud-over-panama-papers/

 

Lawyers say ‘tax haven’ is a dirty word in Panama Papers case

https://www.icij.org/investigations/panama-papers/lawyers-say-tax-haven-is-a-dirty-word-in-panama-papers-case/

 

We already know what your talking  about there  still catching  people for it today  but it's so big that i doubt they ever control  it .But we know it exist but   the governments want to sweep it under the rug  because the 1%  control the Goverment .

Edited by steven36
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