Libra cryptocurrency project should be motivation enough for the Federal Reserve launched a real-time payments system, a senior government official wrote Thursday.
The Federal Trade Commission (FTC) commissioner Rohit Chopra has written a letter to the Fed – the US central bank – to support the development of potential “FedNow Service,” the potential of high-speed payment system is now checking group.
And, joined by other government officials around the world, criticized Chopra Libra, cryptocurrency project led by Facebook first introduced in June.
“The details vague and lacking in the shadow of the proposed global central bank’s technology platform has sounded alarm bells internationally, especially given the ongoing scandal Facebook and reputation for abuse,” he wrote. “Laundry list of risk raised by the Libra project will take time to unpack and address. I share the serious concerns raised by Chairman Jerome Powell and Governor Lael Brainard. ”
However, he was looking at getting the public sector solution for the current payment system is more important, writes:
“Regardless of Libra’s ultimate fate, the proposal’s emergence underscores the appetite for real-time payments and the urgency of intervention by the Federal Reserve.”
He sees the demand for quick payments, noting “pent-up frustration” with the big bank fee and noted that “other real-time technologies” has spread rapidly.
It is unclear what FedNow could look like, or how it would operate. This project will not live until 2024.
Although there is no indication that FedNow will utilize blockchain at any point, two US lawmakers have written to the Fed to inquire about his views on the technology. Last month, Reps. French Hill (R-Ark.) And Bill Foster (D-III.) Outlined a number of questions for the Fed, noting that the global supremacy of the dollar may be at risk if other countries to develop digital fiat currency is widely adopted first.
The Fed plans to respond to the letter in the indeterminate future.
Rohit Chopra Andrew Harrer/Bloomberg via Getty Images