Libra-backers realized it's not up to par on standards - Mnuchin

Monday, 14. October 2019 14:22

Libra-backers realized Facebook's cryptocurrency is "not up to par" on money laundering standards and that is why they decided to pull their support, United States Secretary of the Treasury Steven Mnuchin said on CNBC on Monday. He noted that the Treasury has been "very clear" that Libra will be scrutinized in case it doesn't meet money laundering standards.

Commenting on reports that described a letter from US Senators "threatening" towards Libra, Mnuchin said that wasn't the case since the Treasury is prepared to take action against any entity that doesn't meet financial regulation standards.

Last week, members of the Senate Banking Committee said that VIsa and Mastercard need to be careful in their support of Libra as they could "expect a high level of scrutiny" over the move. After the warning from the Senate, Libra lost a number of strong backers, including Visa, Mastercard, eBay and Stripe. PayPal backed out of Libra before the group of four.

Related Links: Facebook Inc.
Author:
Breaking the News / VP