Facebook met with Fed officials before unveiling Libra, Powell confirms

By The FedFOXBusiness

Facebook’s cryptocurrency sparks new privacy concerns

Deke Digital CEO Dave Maney on Facebook’s new cryptocurrency, Libra.

Federal Reserve Chairman Jerome Powell confirmed that Facebook officials met with policymakers at the U.S. central bank before rolling out their new cryptocurrency platform Libra.

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"Facebook, I believe, has made quite broad rounds around the world, really, with regulators, supervisors and lots of people to discuss their plans," Powell said during a press conference in Washington, D.C. "And that certainly includes us."

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"We meet with a broad sector all the time," he added. "There's just a tremendous amount of innovation going on out there."

On Tuesday, the social media giant unveiled details about Libra, a new cryptocurrency powered by blockchain, and Calibra, a digital wallet that can be used to save, send and spend Libra.

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Facebook said it will lead a number of big-name investors -- including Visa, PayPal and Uber -- to create Libra, which is currently set to launch at the beginning of 2020.

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Powell noted, however, that the Fed does not exercise "plenary authority" over cryptocurrencies -- nor does it plan to regulate it anytime soon.

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