Jerome Powell: Digital Currencies Are in Their Infancies
The Facebook Libra isn't overtaking the dollar yet, and Jerome Powell doesn't expect that to be the case anytime soon.
At the press conference following the Fed's decision to leave rates unchanged, Federal Reserve Chair Powell was asked about digital currencies, and more specifically, Facebook's Libra.
In case you missed it...Facebook released a whitepaper Tuesday that broke down its new digital currency.
Here's a quick breakdown: The Libra Association, a group of 28 business partners working through a group that will be based in Geneva, Switzerland, will administer the global cryptocurrency, which will be used on Facebook's platform and is expected to be launched next year.
The coins will be held by users in a digital wallet called Calibra, which will be connected to Facebook's two messaging platforms -- WhatsApp and Messenger -- and will be backed by a basket of global fiat currencies and "offer better, cheaper, and open financial services." Powell responded to say that digital currencies, like Libra, which have gotten a lot of attention as a possible replacement to more traditional currencies, are still in their "infancies." Watch the video to see what Powell has to say about Facebook's Libra and cryptocurrencies.
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