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A Fed Governor And Watchdog Boss Made A Serious Bitcoin And Crypto Warning

Many governments and central banks around the world have expressed concerns that Facebook's libra, a so-called stablecoin that will be pegged to a basket of traditional currencies, could undermine state control of economies if it becomes a widely used payment method.

"Financial Stability Board members recognize the speed of innovation in the area of digital payments, including so-called 'stablecoins," Quarles said, referring to Facebook's planned libra cryptocurrency, scheduled for launch later this year and aimed at bringing digital finance to the developing world. "We are resolved to quicken the pace of developing the necessary regulatory and supervisory responses to these new instruments."

Earlier this week, the U.S. admitted bitcoin and cryptocurrency could undermine the dollar's status as the world’s reserve currency and the U.S. Office of the Director of National Intelligence is looking for two researchers to evaluate the impact of the U.S. dollar losing its status as the world reserve currency.

Last year, U.S. president Donald Trump slammed bitcoin as based on "thin air," following Facebook's announcement it will launch libra in 2020, while his Treasury secretary Steven Mnuchin branded bitcoin a "national security threat."

Meanwhile, calls for the U.S. to begin development of a so-called digital dollar have been growing louder over recent months.

See the full story here: https://www.forbes.com/sites/billybambrough/2020/02/22/a-fed-governor-and-watchdog-boss-made-a-serious-bitcoin-and-crypto-warning/#29faac27303d