Congresswoman and chairman of House Financial Service Maxine Waters cautions Facebook to stop its plan to roll out Libra cryptocurrency in 2020.
Congress believe that it has a well founded reason to request that facebook stop the launch considering Facebook’s notorious reputation with data protection and user privacy. Maxine cited “Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action. Facebook executives should also come before the Committee to provide testimony on these issues,” Waters said.
Facebook is looking to create a digital currency and infrastructure that will deliver what it dubbed as the “Internet of money”. Facebook believes that with the advent of blockchain technology transacting money across the globe should be equally easy, cost effective, and as safe, if not more safe than sharing a photo or sending a text message.
Facebook urges that Libra will be built on the safe “Libra blockchain” and “that is built on a secure, scalable, and reliable blockchain; It is backed by a reserve of assets designed to give it intrinsic value;It is governed by the independent Libra Association tasked with evolving the ecosystem”.
Congresswoman Waters maintains her stances further citing that “Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data,” she said. “It has also exposed Americans to malicious and fake accounts from bad actors, including Russian intelligence and transnational traffickers. Facebook has also been fined large sums and remains under a Federal Trade Commission consent order for deceiving consumers and failing to keep consumer data private, and has also been sued by the government for violating fair housing laws on its advertising platform.
“With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users,” she added. “The cryptocurrency market currently lacks a clear regulatory framework to provide strong protections for investors, consumers, and the economy. Regulators should see this as a wake-up call to get serious about the privacy and national security concerns, cybersecurity risks, and trading risks that are posed by cryptocurrencies.”
As of today, Facebook has not disclosed any plans to halt the development of Libra Cryptocurrency.