Chairman of the United States Federal Reserve Jerome Powell said that the United States Federal Reserve monitors digital currencies closely, but does not currently work on its own.
Speaking at a forum in Zurich, Switzerland, September 6, Powell raised the issue of cryptocurrency, arguing that central banks will probably not issue their own digital currency in the near future. Powell added that cryptocurrency raises a number of concerns, including cybersecurity issues:
"If you think of a currency that was for the United States, it would really need to be cyber secure because it's one thing to be able to fake paper currency, that's another thing to hack into a cyber currency and make, with a computer, how much of it you want. "
When asked about Facebook's upcoming Libra stablecoin, Powell said the project would need to meet higher standards and regulations and regulatory expectations especially because of the social media company's large user base. Powell added that it is not clear how this would happen under the current regulatory system.
Powell thus reiterated his previous statement on Libra, suggesting that it must reach a high bar before the cryptocurrency project can continue. He said that the Federal Reserve does not "have plenary authority over cryptocurrencies as such," although he claims the Fed still has "significant input into the payment system."
In July, Powell acknowledged the possibility of a prominent cryptocurrency drawing on the current economic landscape ̵