Fed president warns of libra, bitcoin drops as a result

The exchange rate of bitcoin crypto coin fell sharply on Wednesday and Thursday. The reason for the decline was a warning from Fed President Jerome Powell about Facebook crypto libra. The bitcoin has dropped around 15 percent since Wednesday afternoon.


The exchange rate of bitcoin crypto coin fell sharply on Wednesday and Thursday. The reason for the decline was a warning from Fed President Jerome Powell about Facebook crypto libra. The bitcoin has dropped around 15 percent since Wednesday afternoon.

Powell said to be concerned about Facebook's crypto currency. The concerns of the Fed boss are about privacy issues, money laundering and consumer protection.

In addition to his concerns about the crypto coin, Powell said that he does not think Facebook should continue to develop the libra if nothing is done about the aforementioned problems.

In the past two weeks, both the central bank of China and the European Central Bank warned of the libra. The Chinese central bank wants the crypto currency to be placed under surveillance, because the crypto currency can disrupt monetary policy and bring in exchange rates

A board member of the European Central Bank (ECB) told Bloomberg that the currency must be regulated quickly. "It cannot happen that they develop financial services without any rules, which is too dangerous," said ECB board member Benoît Coeuré.

Facebook: Paying with libra should be possible in early 2020

Facebook announced on June 18 the arrival of the libra. With this, users must be able to send money to each other and make purchases in stores.

You can pay via the Calibra app or via Whatsapp and Facebook Messenger. Facebook wants the first payments to be made with libra at the beginning of 2020.

ref: nunl