Share this article

Mnuchin 'Fine' With Libra Launch, But Crypto Project Must 'Fully' Comply With AML Rules

Steven Mnuchin, secretary of the U.S. Treasury, has no issue with the launch of the Facebook-led Libra project – as long as financial rules are followed to the letter.

Updated Sep 13, 2021, 11:46 a.m. Published Dec 6, 2019, 11:15 a.m.
mnuchin-2

Steven Mnuchin, secretary of the U.S. Treasury, has no issue with the launch of the Facebook-led Libra project – as long as financial rules are followed.

“I’m fine if Facebook wants to create a digital currency, but they need to be fully compliant” with financial secrecy and anti-money laundering rules, he said Thursday, according to a Bloomberg report. “In no way can this be used for terrorist financing.”

Mnuchin was speaking in Washington, D.C. at a hearing of the House Financial Services Committee in response to a question from a lawmaker.

Since Libra was announced in June, much to the chagrin of the globe's regulators and central banks, Mnuchin indicated he's met with Facebook a dozen times to talk over regulatory concerns. That's slowed the pace of the payments project's move toward launch, he said.

Libra will be a stablecoin for payments through Facebook platforms and other wallets and products and is likely to be pegged to a basket of national currencies and government bonds.

At the hearing, Mnuchin also said the U.S. is unlikely to develop a digital currency in the near term, Bloomberg wrote.

“[Federal Reserve Chair Jerome] Powell and I have discussed this – we both agree that in the near future, in the next five years, we see no need for the Fed to issue a digital currency,” Mnuchin said.

The hearing saw questions over China's plans to launch a digital yuan in the near future. The European Central Bank also made comments recently that it might launch a digital currency if traditional payments methods are not improved for consumers.

Powell has previously indicated that the Fed is evaluating a digital dollar, but the benefits are not yet clear.

Більше для вас

Paris, France (Denisse Leon/Unsplash)

The statements signal a potential shift in stance within the French government and its central bank.

Що варто знати:

  • French Finance Minister Roland Lescure called for more euro-denominated stablecoins and urged EU banks to explore tokenized deposits, marking a notable policy shift in Paris.
  • Lescure backed Qivalis, a consortium of 12 European banks planning to launch a euro-pegged stablecoin in the second half of 2026 to counter U.S. dominance...