New York (CNN Business) The Federal Reserve has set up a working group to evaluate Facebook's Libra cryptocurrency, Chairman Jerome Powell told the House Financial Services Committee during his testimony Wednesday.

Facebook FB Since it was announced three weeks ago , Libra has come under increasing regulatory scrutiny around the world. Many fear it could quickly become a universally accepted form of payment at a time when cryptocurrencies remain largely unregulated.has said it spoke with regulators before the announcement, something Powell confirms, but that effort apparently failed to assuage concerns.

While Powell acknowledged that he does "support reasonable innovation in the financial services industry," he said that Libra "raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability."

He said the Fed's Libra working group is collaborating with US regulatory agencies and the Treasury Department, as well as central banks and governments around the world. The Treasury's Financial Stability Oversight Council has also set up a staff-level working group to look at Libra and it met last week to discuss the project, Powell said.

"The process of addressing these concerns, we think, should be a patient and careful one and not a sprint to implementation," Powell said.

Read More