Fed Chair Powell and Treasury Secretary Mnuchin talk digital currencies again
|Once again Fed Chair Powell and Treasury Secretary Mnuchin have commented on digital currencies saying
Chair 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,
Their comments come as countries in Europe and China aim to test and create their own digital currencies to rival Facebook.
In a surprise comment Mnuchin said:
I’m fine if Facebook wants to create a digital currency, but they need to be fully compliant
In no way can this be used for terrorist financing
This goes against some other government members and Senators who are fully opposed to Libra. Some Central Banker's like Mark Carney (Governor of the Bank of England) seem more progressive and think that a few central banks should come together and make a coin to rival Libra. He made this statement at the Jackson Hole symposium and shocked other central bankers. His logic was simple if Libra becomes some kind of reserve currency then it could knock the USD of its perch and that could be a threat to the current status quo.
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