Libra cryptocurrency will pose risks to consumers .. Fed declares

A member of the Federal Reserve Board said that the cryptocurrency Libra announced by Facebook, may pose risks to consumers, because of the lack of clarity of their rights with regard to the basic assets of the symbol and the system as a whole.

Lyle Brainard, who chaired the Federal Reserve's Committees on Financial Stability, Federal Reserve Affairs, Consumer and Community Affairs, Payments, Clearing and Settlement, explained his criticism of Libra during a speech at the Future of Money in the Digital Age Forum in Washington, DC , October 16

Brainard evaluated a number of existing payment networks on digital platforms, such as Alibaba and WeChat, noting that through some estimates, AliPay and WechatPay handled more than $ 37 trillion in mobile payments in 2018 alone.

However, Facebook's attempt to launch a stable global currency network - given its 2.7 billion potential user base - has given particular urgency to the debate about current and future forms of money, and “threshold questions about legal and regulatory safeguards, financial stability and monetary policy.

He noted that despite consumer and legal protection of bank deposits - through insurance, clear obligations in cases of fraud, and standardized disclosure of account fees and interest payments - it remained unclear what protection, if any, would be provided to balance users. He said consumers should be warned that stable currencies are likely to be completely different from the legally issued currency.

• Global financial system and cryptocurrency race : 

Apart from his strong focus on consumer protection, Brainard also shared his detailed view on the potential risks posed by Libra.

These include, but are not limited to, data security and privacy risks, their potential impact on banks' stable funding sources, central banks' implementation of effective monetary policy, and financial stability risks, exacerbated by a “potential uncertainty surrounding the authorities' ability to provide oversight, liquidity support and cooperation, he said. Across the border. 

As reported in the report, analysts at RBC Capital Markets recently warned that if US regulators chose to “eventually abolish the Libra cryptocurrency,” the next central bank cryptocurrency could become the actual global digital currency in emerging economies.

UNICEF has launched the Cryptocurrency Fund to support open source technology

UNICEF has launched the Cryptocurrency Fund to support open source technology

UNICEF, the United Nations Children's Fund (UNICEF), has launched an encryption fund to receive, preserve and distribute Bitcoin and Ather donations to support open source technology for children around the world.

UNICEF said in a statement on Wednesday that the Cryptocurrency Fund would initially receive contributions to a cryptocurrency and be donated in the same form as the cryptocurrency.

The three donors that will receive the initial donations are Prescrypto, Atix Labs and Utopixar, with a focus on "prescription tracking, matching investors and those in need of funding, community codes and participation.

Aya Miyaguchi, executive director of Ethereum, said in a keynote speech at the DevCon event that 100 ether, worth about $ 18,000 at its current price, has been sent to UNICEF through the new partnership.

This is an exciting new project for UNICEF, said UNICEF Executive Director Henrietta Fore. If economies and digital currencies have the potential to shape the lives of future generations, it is important to explore the opportunities they offer.

UNICEF's Cryptocurrency Fund is the latest group of United Nations agencies for children to adopt blockchain technology to achieve its broader goal. Earlier this year, he was in talks with the Kyrgyz government to use blockchain to provide Internet access in schools in the country through the so-called Project Connect project.

In December last year, UNICEF said it was investing $ 100,000 in six new blockchain companies to solve global challenges through blockchain, from providing transparent medical care to financial and resource management.