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| Facebook's Libra could be misused, says treasury chief Mnuchin | Facebook's Libra could be misused, says treasury chief Mnuchin |
| (32 minutes later) | |
| Facebook's planned Libra cryptocurrency faced further opposition on Monday when the US treasury secretary warned about its potential criminal use. | Facebook's planned Libra cryptocurrency faced further opposition on Monday when the US treasury secretary warned about its potential criminal use. |
| Steven Mnuchin told a press conference it could be used by "money launderers and terrorist financiers" and said it was a national security issue. | Steven Mnuchin told a press conference it could be used by "money launderers and terrorist financiers" and said it was a national security issue. |
| He was "not comfortable" about Libra, joining President Donald Trump and the US central bank in voicing concern. | |
| Facebook executives will appear before a congressional committee on Tuesday. | Facebook executives will appear before a congressional committee on Tuesday. |
| David Marcus, who will oversee Libra, is expected to tell the Senate Banking Committee that Facebook will not launch the currency until regulatory concerns are addressed. | David Marcus, who will oversee Libra, is expected to tell the Senate Banking Committee that Facebook will not launch the currency until regulatory concerns are addressed. |
| Mr Mnuchin said Libra would have to convince financial regulators it has high privacy standards. | Mr Mnuchin said Libra would have to convince financial regulators it has high privacy standards. |
| He declined to comment on any regulatory timeline for Libra, but said he was "not comfortable today" about digital currency and that Facebook was a "long way away from" securing approval. | He declined to comment on any regulatory timeline for Libra, but said he was "not comfortable today" about digital currency and that Facebook was a "long way away from" securing approval. |
| Cryptocurrencies generally "have been exploited to support billions of dollars of illicit activity like cyber crime, tax evasion, extortion, ransomware, illicit drugs and human human trafficking," Mr Mnuchin said. | Cryptocurrencies generally "have been exploited to support billions of dollars of illicit activity like cyber crime, tax evasion, extortion, ransomware, illicit drugs and human human trafficking," Mr Mnuchin said. |
| Failure to act | |
| Last week, Mr Trump tweeted that he was "not a fan" of cryptocurrencies, and hinted that Facebook might need a banking licence. | Last week, Mr Trump tweeted that he was "not a fan" of cryptocurrencies, and hinted that Facebook might need a banking licence. |
| Jerome Powell, head of the Federal Reserve, also said last week that Libra raises many serious concerns. | Jerome Powell, head of the Federal Reserve, also said last week that Libra raises many serious concerns. |
| The tech giant, which hoped to launch Libra next year, has said it "anticipated critical feedback" and is keen to have "conversations" with officials and regulators. | The tech giant, which hoped to launch Libra next year, has said it "anticipated critical feedback" and is keen to have "conversations" with officials and regulators. |
| In prepared testimony released on Monday ahead of Tuesday's senate hearing, Mr Marcus said: "The Libra Association, which will manage the [Libra] reserve, has no intention of competing with any sovereign currencies or entering the monetary policy arena. | |
| "Monetary policy is properly the province of central banks," he said. "Facebook will not offer the Libra digital currency until we have fully addressed regulatory concerns and received appropriate approvals." | |
| Mr Marcus said the US must lead innovation in digital currencies, adding: "If we fail to act, we could soon see a digital currency controlled by others whose values are dramatically different." |