By WSJ City

Facebook began to learn how Washington will check its push into digital currencies, with leaders of the Federal Reserve and an influential Senate committee saying they will scrutinise its rollout.

"We will wind up having quite high expectations from a sort of safety and soundness and regulatory standpoint if they do decide to go forward with something."

Fed Chair Jerome Powell, at a news conference after the Fed held its benchmark interest rate steady

KEY FACTS

--- Fed Chairman Jerome Powell said the central bank has "significant input into the payments system."

--- That's the e-commerce network that Facebook is seeking to disrupt with its Libra currency.

--- Banking regulators can also enforce anti-money-laundering controls on such businesses, he told reporters.

--- Powell said Facebook has met with the Fed about the project, along with regulators around the world.

--- A Facebook spokeswoman declined to comment.

--- Cryptocurrencies have become a puzzle for regulators: rules written decades ago aren't suited to digital currencies.

Next Steps

Facebook is also expected to face critics on Capitol Hill, where the Senate Banking Committee plans to hold a hearing next month to probe its venture. The committee's quick move to stage a hearing indicates "there will be significant political opposition" to Facebook's involvement with Libra, Cowen & Co. analyst Jaret Seiberg said. "We believe the initial hearing is critical for Facebook and its digital currency expectations," he added.

A fuller story is available on WSJ.com

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(END) Dow Jones Newswires

June 20, 2019 10:11 ET (14:11 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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