We all know that Facebook has recently announced plans to launch Libra in 2020 but we still had some questions around regulations.
Well, we have also seen that Facebook has already consulted with the central bank about its proposed project.
The Federal Reserve Chairman, Jerome Powell stated on June 19th that the social media giant has exchanged words with central bank officials to appraise them of the project.
He said “Facebook, I believe, has made quite broad rounds around the world with regulators, supervisors and lots of people to discuss their plans and that certainly includes us”.
His statement indicates that Facebook has not simply spoken to officials within the United States but in other nations as well. This makes quite a bit of sense, Facebook is global and has ambitions to be one of the fundamental entities present within the world today.
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With a population of more than 2 billion users, Facebook certainly has enough social media citizens to be a country of its own, with its own rules and regulations, and now, its own potential currency. The giant is working with a group of partners ranging from Mastercard to Uber to bring Libra to Facebook citizens.
It looks like Facebook only met with a few key people at financial organizations around the world, as several politicians were taken by surprise at the announcement.
Senate to Investigate Facebook In July
The Senate Banking Committee will seek to drill down further on the new cryptocurrency project, Libra. The hearing will take place on July 11th at 10 AM ET.
Politicians on Twitter expressed their concerns with Facebook and its current levels of data penetration, they fear that a currency might be more invasive to its users.
The leaders of the project should be present at the hearing but at the moment, we are still awaiting further details. Cryptocurrency members have already weighed in on the Libra initiative.
Facebook Sees Stock Bump
This entrance into the financial sector has helped to bolster the stock price and Facebook ($FB) is trading at $189.53 at the current moment.
