American Banks Giants have expressed their complaints about Facebook’s Cryptocurrency Libra. The banks say that Libra can prove to be a monetary threat.
According to the report of Bloomberg, the executives of these American Banks have discussed this matter with Federal Reserve and say that the cryptocurrency of Facebook Libra will become a big threat to the US monetary policies.
The biggest banks of America have shown their displeasure in their official complaint about Facebook’s Libra.
Banks have raised this point in the Federal Advisory Council meeting. The banks say:
Facebook is potentially creating a digital monetary ecosystem outside of sanctioned financial markets — or a ‘shadow banking’ system.
According to a Bloomberg report, the members of this council are Chief executive officers. These members include Rene Jones of M&T Bank Corp., Beth Mooney of KeyCorp, and Brian Moynihan of Bank of America Corp.
The Bloomberg report further states:
As consumers adopt Libra, more deposits could migrate onto the platform, effectively reducing liquidity, and that disintermediation may further expand into loan and investment services.
The two lawmakers of US named Rep. French Hill (R-Ark.) and Rep. Bill Foster (D-Ill.) write a letter to the chairman of the Federal Reserve Jerome Powell asking him to develop a digital dollar.
Various serious concerns raised by Libra
Jerome Powell, in the month of July, said in front of the congressional committee that Libra cryptocurrency has caused various concerns such as money laundering, privacy, financial stability, and consumer protection.
Sherrod Brown, a Senator from Ohio was also present at that hearing. He asked the inventor of Facebook’s Libra about the trustworthiness of the company.
In Paris, at the OECD conference of Blockchain and cryptocurrencies, the minister says that he wants to be clear about the Libra and says that they cannot allow the Libra’s development in European soil until it is involved in such situations.
In short, Facebook’s Libra has become a big threat to US monetary and the American Banks have shown their serious concerns about this matter.