Mnuchin ‘Fine’ With Libra Launch, But Crypto Project Must ‘Fully’ Comply With AML Rules – CoinDesk

News
Spread the love

Steven Mnuchin, secretary of the U.S. Treasury, has no issue with the launch of the Facebook-led Libra project – as long as financial rules are followed.

“I’m fine if Facebook wants to create a digital currency, but they need to be fully compliant” with financial secrecy and anti-money laundering rules, he said Thursday, according to a Bloomberg report. “In no way can this be used for terrorist financing.”

Mnuchin was speaking in Washington, D.C. at a hearing of the House Financial Services Committee in response to a question from a lawmaker.

Since Libra was announced in June, much to the chagrin of the globe’s regulators and central banks, Mnuchin indicated he’s met with Facebook a dozen times to talk over regulatory concerns. That’s slowed the pace of the payments project’s move toward launch, he said.

Libra will be a stablecoin for payments through Facebook platforms and other wallets and products and is likely to be pegged to a basket of national currencies and government bonds.

At the hearing, Mnuchin also said the U.S. is unlikely to develop a digital currency in the near term, Bloomberg wrote.

“[Federal Reserve Chair Jerome] Powell and I have discussed this – we both agree that in the near future, in the next five years, we see no need for the Fed to issue a digital currency,” Mnuchin said.

The hearing saw questions over China’s plans to launch a digital yuan in the near future. The European Central Bank also made comments recently that it might launch a digital currency if traditional payments methods are not improved for consumers.

Powell has previously indicated that the Fed is evaluating a digital dollar, but the benefits are not yet clear.

Disclaimer Read More

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.

Related Articles