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Mnuchin: Treasury Concerned About Facebook's Libra Plans

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Mnuchin: Treasury Concerned About Facebook's Libra Plans

Treasury Secretary Steven Mnuchin on Monday expressed concerns about Facebook, Inc (NASDAQ: FB)’s proposed new digital currency Libra.

Mnuchin said the potential exists for the planned digital currency to be misused, and that could present a national security issue.

Facebook announced earlier this year it plans to launch the cryptocurrency in 2020 in partnership with several other companies.

Why It's Important

Mnuchin’s remarks follow remarks on Twitter by President Donald Trump, who said he’s not a fan of cryptocurrency, and said that if “Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations.”

Mnuchin said the Treasury Department’s concerns around Libra include money laundering.

“Treasury has been very clear to Facebook…and other providers of digital financial services that they must implement the same anti-money laundering safeguards in countering the financing of terrorism as traditional financial institutions,” Mnuchin said Monday afternoon.

Facebook didn't immediately comment on Mnuchin’s remarks.

Members of Congress and the Federal Reserve Board have also expressed concerns about the Facebook plan. Democrat U.S. Rep. Maxine Waters requested Facebook not move forward until Congress and regulators have the chance to examine the proposal.

Price Action

Shares of Facebook traded Monday around $204.75.

Related Links:

As Facebook Prepares To Launch Libra, Regulators Are Watching

Analyst: Facebook's Libra A 'Benefit' For Bitcoin, Not A Competitor

Posted-In: digital currencyCryptocurrency Fintech Government Regulations Top Stories Markets Tech Best of Benzinga

 

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