Fed Should Launch FedNow Forward of Fb’s Libra, Says Gov’t Official
A senior United States federal official has argued that Fb’s Libra highlights the necessity for the Federal Reserve (Fed) to behave urgently and launch its personal real-time funds system.
In a letter addressed to the Federal Reserve’s Board of Governors on Nov. 7, Rohit Chopra — a commissioner at the USA Federal Commerce Fee — expressed his assist of the central financial institution’s proposal to launch a brand new, round the clock real-time funds system dubbed “FedNow Service.”
A possible “shadow international central financial institution”
In his letter, Commissioner Chopra argued that the central financial institution should act swiftly to forestall new threats to its oversight — whether or not these come up underneath the aegis of a “potential non-public megabank monopoly” or from a private-sector competitor like Fb, he wrote:
“As massive non-public corporations on Wall Avenue and Silicon Valley search to leverage their market energy by management of crucial infrastructure, it’s extra essential than ever for the Board to…