Today the U.S. Federal Reserve Governor Lael Brainard discussed the
Facebook Libra digital currency at a central bank conference in Frankfurt Germany. Brainard expressed concerns about the potential for global adoption of the stable coin in a short time and for Libra to become a new unit of account. Based on her comments, it also appears unlikely that the U.S. would consider a
Central Bank Digital Currency (CBDC) any time soon.
Brainard is the Chair of the Committees on Financial Stability as well as Clearing and Settlements, in addition to others.
Governor Brainard started by highlighting the rapid pace of technological change with the internet reaching 80% penetration in the U.S. in 13 years. Plus she pointed to the massive growth in payments systems Venmo, Alipay and WeChat in the space of five years. And none of them started with the enormous scale advantage that Facebook has.
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