<a href="https://www.cryptoknowmics.com/crypto/new-bill-could-put-facebooks-libra-stablecoin-under-us-securities-law/">Facebook's</a> aspirational move to launch a universal digital payment system in the form of Libra network has been at the receiving end of regulators. Now, the governor of the US Federal Reserve Lael Brainard, has shared his views on why Libra is facing such scrutiny. Brainard said that the issue is not with private stable coins as there are already many in the market, the main problem lies in the scale at which Libra will be launched and the backers of the project.

Brainard explained that Facebook has a combined userbase of over 2 billion users, which means almost one-third of the world uses Facebook, and this scale can put the users at risk. Libra's launch would have a drastic impact on the global level. Thus the regulators have to look at every aspect of the project. She explained,
<blockquote>"Stablecoin networks at the global scale are leading us to revisit questions over what form money can take, who or what can issue it, and how payments can be recorded and settled,”</blockquote>
<h2></h2>
<h2>Regulators concerns over Libra</h2>
Libra, in its white paper, claimed that its universal stablecoin would be backed a basket of dominant fiat currencies like US Dollar, Euro, Yen and many more. However, regulators believed Libra was trying to outsmart lawmakers as multiple fiat backing would mean it would not fall under the jurisdiction of any regulatory body. Libra also failed to explain why it claims itself a decentralized when the core Libra Association was not democratically chosen.

Brainard also stressed that Facebook's record at safeguarding user privacy and sensitive data is also one of the main hurdles on why regulators are concerned over Libra. She emphasised saying,
<blockquote>“Without requisite safeguards, stablecoin networks at global scale may put consumers at risk. Cryptocurrencies already pose a number of risks to the financial system, and these could be magnified by a widely accepted stablecoin for general use.”</blockquote>
Brainard's <a href="https://www.federalreserve.gov/newsevents/speech/files/brainard20191218a.pdf">comments</a> came during a conference organized in Frankfurt.

US Fed Governor Says Libra Could Put Users at Risk

US Federal Reserve Governor believe unless Libra addresses all regulatory concerns a nod to go ahaead would put users at risk.

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

US Fed Governor Says Libra Could Put Users at Risk

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