Facebook’s Libra stablecoin must meet the highest Anti-Money Laundering (AML) and terrorism financing standards, according to United States Treasury Under Secretary of Terrorism and Financial Intelligence Sigal Mandelker. Business news outlet Reuters reported Mandelker’s remarks on Sept. 10. Cryptocurrencies must comply Per the report, Mandelker also told reporters in Geneva that any cryptocurrency operating in the U.S. — including Libra — has to satisfy local regulatory standards. Regulators are concerned by Libra Global financial regulators are concerned about Libra, with the European Central Bank’s key legal official Yves Mersch recently saying Facebook’s stablecoin is “beguiling but treacherous” during a speech …

Social media giant Facebook, which is currently trying to get regulatory approval for its Libra stablecoin project, reportedly shared details regarding the project’s proposed backing reserves. According to a report by Bloomberg on Sept. 9, Facebook told United States senators about the backing reserves for the stablecoin — a type of cryptocurrency valued by a reserve currency, commodity or algorithm. Libra is backed by major national currencies Libra will reportedly be backed by several national currencies. These include the U.S. dollar, euro, Japanese yen, British pound and Singapore dollar. However, the Chinese yuan may be excluded from the group of …

Former United States Representative Harold J. Ford has argued that Congress should have a nuanced approach to regulating cryptocurrencies. In an article published on CNBC on Sept. 5, Ford said that lawmakers and regulators should develop clear regulations toward digital currencies. He noted a comment from Chris Larsen, the executive chairman and co-founder of blockchain startup Ripple, who asked Congress, “Please do not paint us with a broad brush,” when referring to the crypto industry. Separate crypto from Libra Ford specifically addressed the issue of social media giant Facebook and its not-yet-released Libra stablecoin. Ford urged lawmakers to separate the …

Chairman of the United States Federal Reserve Jerome Powell said that the United States Federal Reserve is monitoring digital currencies carefully, but not working on its own at the moment. Speaking at a forum in Zurich, Switzerland, on Sept. 6, Powell addressed the issue of cryptocurrencies, arguing that central banks would likely will not release their own digital currency in the near future. Powell added that cryptocurrencies raise a range of concerns including cyber security issues: "If you think about one currency that was for the United States, it would really need to be cyber secure because it's one thing …

Social media giant Facebook has hired two more lobbyists to aid the release of its forthcoming Libra stablecoin. As Bloomberg reported on Sept. 5, lobbying disclosures filed earlier this week revealed that William Hollier, the president of legislative and regulatory counseling firm Hollier Associates LLC, began lobbying for Facebook on blockchain policy, among other matters, in late August. Previously, Hollier worked for U.S. Republican Sen. Mike Crapo, who said at a hearing on cryptocurrencies and blockchain, “Facebook’s Libra project has generated renewed interest in digital currencies and blockchain [...] with the appropriate balance of regulation, digital currencies, and their innovative …

The new breed of stablecoins led by Facebook’s Libra could be vulnerable to failure in periods of network stress. According to an analysis from JPMorgan released on Sept. 5, they lack the short-term liquidity of other payments systems, so usage could grow faster than the network can safely support. Transaction growth could outpace network capacity In a note to clients, analysts highlighted the potential for substantial growth in stablecoin payment systems like Libra. But JPMorgan urges caution if the networks become responsible for a significant proportion of global transaction activity. The note explains: “As currently designed and proposed, they do …

Banking is often seen as the antithesis of Bitcoin (BTC), the very industry the nascent protocol looks to defuse and disrupt. Ironically, many banks are desperately in need of the attributes and facilities afforded by cryptocurrencies — specifically blockchain, their underlying technology. Perhaps then, it’s not too surprising that more and more cryptocurrency banks are springing up, offering an alternative to tired legacy systems and allowing room for an emerging asset class. However, some significant hurdles remain for these emerging institutions. Regulatory uncertainties are rife within the world of cryptocurrency banking. Ill-equipped regulatory bodies often attempt to pen in budding …

What will 2020 hold for stablecoins? Big launches and some further regulatory drama are increasingly likely. Keep an eye on Facebook and Walmart to see how their projects progress, and watch as countries around the world unveil plans to launch digital versions of their own currencies. It’s likely that regulators will have no choice but to come up with a crystal-clear framework that outlines where stablecoins fit into the economy — but some countries, like India, may continue to push for an outright crypto ban. Back in the crypto community, the coming year could see exchanges work together to ensure …

Yves Mersch, European Central Bank’s key legal official, said that Facebook’s Libra stablecoin is “beguiling but treacherous” during a speech at the ECB’s legal conference in Frankfurt on Monday. Bloomberg reported on Mersch’s remarks in an article published on Sept. 2. Per the report, he said that private currencies have little or no prospect of establishing themselves as viable alternatives to centrally-issued legal tenders. Mersch: Only central banks can be trusted He believes that only independent central banks can grant sufficient institutional banking to make a currency reliable and win public trust. He further noted: “I sincerely hope that the …

Coming every Sunday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link. Top Stories This Week Sudden slump sees Bitcoin lose support for five figures After managing to maintain support above $10,000, Bitcoin (BTC) finally succumbed to bearish pressure this week — shedding $500 in a matter of minutes on Wednesday to stabilize at about $9,500. Altcoins weren’t immune to the sell-off either. Some, including Ether (ETH) and Binance Coin (BNB), …

In the crypto space in Asia last week, new data concerning Bitcoin (BTC) use in Hong Kong shows that residents are using crypto to hedge against the possibility of capital restraints, while the Japanese Financial Services Agency (FSA) is undertaking new regulatory actions. Here is the past week of crypto and blockchain news in review, as originally reported by Cointelegraph Japan. Hong Kong bitcoiner explains local BTC demand On Aug. 31, Cointelegraph Japan reported that Leo Wies, chairman of the Bitcoin Association of Hong Kong, said that he is buying Bitcoin because of his fear of possible future capital restrictions. …

For the cryptosphere, August was marked by the hotly debated announcements of world giants regarding the releases of international cryptocurrencies. The People’s Bank of China (PBoC) announced the imminent release of a national digital currency, Walmart began developing its own blockchain, Binance launching the Venus project, and Pavel Durov’s TON finally shared its release date. The race was also joined by Facebook, which kept the development of its cryptocurrency a secret until the very last second. At the moment, the company is actively hiring specialists who can convince financial regulators to give the Libra coin the right to exist — …