Facebook needs 'very high standard' for Libra coin: US Treasury

Facebook will need to meet "a very high standard" before it moves ahe with its planned digital currency Libra, US Treasury Secretary Steven Mnuchin said Monday. Mnuchin said US regulators have alrey expressed concerns to Facebook about plan for a global cryptocurrency, ting that se kinds of virtual coins have in past been associated with money laundering and illicit activities.

"Wher y're banks or n-banks, y're under same regulatory environment," Mnuchin told reporters at White House, ding that Facebook "will have to have a very high standard before y have access to financial system." 

Facebook last month unveiled its plans for Libra, widely regarded as a challenger to dominant global player bitcoin. Libra is expected to launch in first half of 2020. It is designed to be backed by a basket of currency assets to avoid wild swings of bitcoin and or cryptocurrencies.

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Mnuchin said US Treasury welcomes "responsible invations" that can improve efficiency of financial system but ded: "Our overriding goal is to maintain integrity of financial system and protect it from abuse." 

He said US regulators have met with Facebook officials on this question, and how Facebook can protect against new virtual coin being used for criminal activity.

Commenting on Facebook's claim that Libra could lower costs and help people without access to tritional financial services, Mnuchin said, "That's fine (but) y've got a lot of work to do to convince us y can get to that place." 

Mnuchin's comments echoed concerns voiced by Federal Reserve Chairman Jerome Powell and regulators around world, as well as by lawmakers set to open hearings this week on plan by Facebook and its partners in Libra project.

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David Marcus, who hes Facebook's digital wallet and blockchain efforts, said in testimony prepared for delivery Tuesday that he expects regulators to carry out an extensive review of Libra project. time between w and launch is designed to be an open process and subject to regulatory oversight and review," Marcus was to say in his remarks, which were released by Senate Banking Committee.

"We kw we need to take time to get this right. And I want to be clear: Facebook will t offer Libra digital currency until we have fully dressed regulatory concerns and received appropriate approvals."  companies behind Libra include payment giants Visa, MasterCard and PayPal, as well as ride-hailing apps Lyft and Uber.

Central bankers around world have said y would carefully study proposed currency and last week US President Donald Trump weighed in, saying, "I am t a fan of bitcoin and or cryptocurrencies, which are t money, and whose value is highly volatile and based on thin air."