Mnuchin Has No Issue with Libra Launch As Long as Financial Rules Are Followed

U.S. Treasury Secretary Steven Mnuchin has no issue with the rollout of the Facebook-driven Libra venture—as long as it complies with financial rules.

“I’m fine if Facebook wants to create a digital currency, but they need to be fully compliant” with anti-money laundering and financial secrecy rules, he stated on December 5, as indicated by a Bloomberg report“In no way can this be used for terrorist financing.”

Mnuchin was talking in Washington, D.C., at a hearing of the House Financial Services Committee in light of an inquiry from a legislator.

Since Libra project was officially revealed in June, a lot to the dismay of the world’s regulators and central banks, Mnuchin mentioned he’s met with Facebook multiple times to discuss regulatory concerns. That slowed the pace of the payment initiative’s advancement toward launch, he stated.

Libra will be a stablecoin for payments via Facebook platforms and different wallets and products and is probably going to be pegged to a basket of national currencies and government bonds.

At the hearing, Mnuchin additionally stated the U.S. is probably not going to issue a digital currency soon, Bloomberg reported.

“[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 stated.

The hearing witnessed inquiries over China’s arrangements to issue a digital yuan soon. The European Central Bank likewise made remarks as of late that it may dispatch a digital cash if conventional payment techniques are not enhanced for buyers.

Powell has recently expressed that the Fed is assessing a digital dollar, but the advantages are not yet clear.