Washington, Jul (SF) .- US Treasury Secretary Steven Mnuchin on Monday expressed his “serious concern” about “pound”, the cryptocurrency driven by Facebook, warning of its possible “speculative” character and its potential “use for money laundering”.
“The Treasury Department has expressed serious concerns that Libra could be used for money laundering and financial terrorists,” Mnuchin told a news conference at the White House.
In this regard, he added that the technological giant “has a lot of work to do to convince” the Treasury about the security of the cryptocurrency, while also reporting that it had held several meetings with Facebook executives on the matter. “Our main objective is to maintain the integrity of our financial system and protect it from abuse,” Mnuchin said.
The meetings were also attended by Jerome Powell, president of the Federal Reserve (Fed).
The gigantic potential of this cryptocurrency, having the social network base (2,380 million users worldwide), has generated concern among regulators both nationally and internationally.
Facebook and the other 27 organizations that make up the Libra Association (including Visa, Mastercard, Uber, Lyft, PayPal, eBay, Vodafone and Spotify) announced in June officially the creation of the cryptocurrency for 2020, which will be integrated into WhatsApp and Messenger
Libra will not depend directly on the Mark Zuckerberg company, but will be managed by the association, whose headquarters will be in Geneva (Switzerland), and its value will be supported by a basket of underlying assets composed of bank deposits and sovereign debt of several countries.