Facebook Libra: Five Democrats, led by House Financial Services Committee Chairman Maxine Walters, have sent a letter to Facebook asking for the Libra cryptocurrency project to stop immediately.
The letter argues that regulators will need to address a number of different issues, such as their privacy concerns, trade, national better safety and their monetary policy productof Libra, as "it is a completely new global financial system based in Switzerland and intended to compete with US monetary policy and the dollar".
The letter also claims that Facebook has not provided much information about its plans with this project.
"If products and services such as these are inadequately regulated and without adequate supervision, they could create systemic risks that would jeopardize US and global financial stability", The letter states.
These vulnerabilities could be exploited and masked by malicious users as well as other cryptocurrencies, bureaus, and wallets as we have seen in the past. Regulators around the world have already expressed similar concerns, demonstrating the need for strong oversight.
"Given the company's troubled past, I am asking Facebook to agree to a moratorium before proceeding with any movement on cryptocurrency development until Congress and regulators have a chance to consider these issues and take action,” Walters said.
Walters will call a committee on July 17, called Examining Facebook's Proposed Cryptocurrency and Its Impact on Consumers, Investors, and the American Financial System, to discuss the Libra project , the risks and benefits of cryptocurrency activities.
The company presented her plans for Facebook Libra on June 18, saying he plans to release the new digital currency 2020.
The Libra cryptocurrency will be a global Facebook currency, and can be used to buy products, send money across borders or make donations. The social network is reportedly working alongside 27 partners to launch Libra, which is expected to launch alongside a new digital wallet which will work with Messenger apps and Whatsapp.
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