NEW YORK/SAN FRANCISCO(Reuters) – Facebook Inc will face unprecedented regulatory scrutiny over a new digital currency that the social media company hopes will become globally recognized legal tender within a year.
Since Facebook unveiled its cryptocurrency, called Libra, 10 days ago, Reuters has spoken with more than a dozen people with experience in financial regulation, financial technology, payments or cryptocurrency. Few expected government agencies to proceed lightly.
The company’s announcement was met with immediate backlash from U.S. lawmakers and regulators across the globe, who are concerned that Facebook is already too massive and careless with users’ privacy.
Randal Quarles, chair of the Financial Stability Board, which coordinates financial rules for G20 countries, warned this week that wider use of crypto-assets for retail payments needs close global scrutiny by regulators. Cryptocurrencies such as bitcoin remain one of the least-regulated areas of finance….
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