Intersection: Crypto & Wall Street This Week

As bitcoin, ethereum and other cryptocurrencies get increasing attention from investors, Wall Street and its traditional banks continue to adjust to the shift. Catch up on this week's top stories highlighting the intersection of these old guard and new school areas of finance with this recap compiled by The Fly.

FACEBOOK STILL BACKS LIBRA: Facebook's (FB) Libra head David Marcus told a panel at the International Monetary Fund conference that he still expects to get 100 lenders and financial firms on board with the digital currency project once it addresses regulatory issues, Reuters' Michelle Price reported Wednesday. "It will take time for us to address all of the regulatory concerns that were raised and it's our duty and our responsibility to come with answers to all of these questions," Marcus said. "I think once we've done this then I think we'll see more banks and traditional financial services firms join the effort." The news comes after several high-profile partners abandoned the project, including Visa (V), MasterCard (MA), PayPal (PYPL), Booking (BKNG), and eBay (EBAY).

Additionally, U.S. Federal Reserve Governor Lael Brainard said Libra must overcome a "core set of legal and regulatory challenges" before getting involved in a single payment, Reuters' Pete Schroeder reported Wednesday. Brainard said that central bank's efforts to conduct monetary policy could be "complicated" by broad adoption of an external currency like Libra, though she indicated that the Fed is not in any rush to issue its own digital currency. "It should be no surprise that Facebook's Libra is attracting a high level of scrutiny from lawmakers and authorities," she said. "Libra, and indeed any stablecoin project with global scale and scope, must address a core set of legal and regulatory challenges before it can facilitate a first payment."

The Wall Street Journal's AnnaMaria Andriotis, Peter Rudegeair and Liz Hoffman also reported Wednesday that JPMorgan (JPM) and Goldman Sachs (GS) rejected any involvement in Libra because of fears it would be used by criminals. The investment banks declined Facebook's invitation to join Libra because of worries that cryptocurrency could be used to violate money laundering and sanctions laws.

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