Bitcoin Falls Sharply as Fed’s Powell Flags ‘Serious Concerns’ about Facebook’s Cryptocurrency
The world’s best-known digital coin -which has experienced a meteoric rise in 2019 – fell 12% to about $11,450 on Thursday, according to CoinDesk data.
Bitcoin had hit a 17-month high above $13,000 just two weeks ago. It’s currently up about 200% since the start of the year, having gathered momentum as large companies like Facebook and Fidelity get involved in the space.
But it began sliding as Powell said that he held “serious concerns” about Facebook’s planned digital currency Libra. The social network is looking to launch the token alongside a consortium of companies including Uber and Visa.
“Libra raises serious concerns regarding privacy, money laundering, consumer protection, financial stability,” Powell said at a congressional committeeWednesday. “These are concerns that should be thoroughly and publicly addressed.”
Powell also called for a halt to the project until regulators’ questions about Libra are addressed. The Fed has set up a working group aimed at examining Libra, he added.
Facebook’s Libra takes the form of what’s known as a stablecoin. These are cryptocurrencies that are often pegged to currencies like the dollar. In Libra’s case, the token is backed by a group of government currencies and debt securities.
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