The strong comments from the head of the U.S. central bank, the country's top financial regulator, adds to misgivings about the project, which has already produced strong skepticism among top policymakers across the globe.
"I don't think that the project can go forward ... without there being broad satisfaction with the way the company has addressed money laundering, all of those things," Powell said in an appearance before the U.S. House of Representatives Financial Services Committee.Powell said the digital currency project, announced by the social media giant in June, raised "serious concerns" for regulators." Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability," he told the committee.
"These are concerns that should be thoroughly and publicly addressed." Powell said any regulatory review of the recently announced project should be "patient and careful."He said the Fed has established a working group to follow the project and is coordinating with other central banks across the globe.
He also expects the U.S. Financial Stability Oversight Council, a panel of financial regulators, will also review the idea.
Facebook's David Marcus faced another day of governmental grilling, this time at the hands of the House Financial Services Committee, over the social media giant's plans for its digital currency Libra.