US lawmakers have asked Facebook to “immediately cease implementation plans” of its Libra cryptocurrency. Before it continues any further, the House Financial Services Committee, driven by Democrat Maxine Waters, needs to inspect risks around cybersecurity, worldwide financial markets, and national security concerns, it said in a letter to Facebook.
“We write to request that Facebook and its partners immediately agree to a moratorium on any movement forward on Libra — its proposed cryptocurrency and Calibra — its proposed digital wallet,” the committee wrote. “It appears that these products may lend themselves to an entirely new global financial system that is based out of Switzerland and intends to rival US monetary currency and the dollar. This raises serious privacy, trading, national security and monetary policy concerns for not only Facebook’s over 2 billion users, but also for investors, consumers and the global economy.”
Facebook propelled Libra cryptocurrency a month ago as an approach to “make it easy for everyone to send and receive money just like you use our apps to instantly share messages and photos,” Mark Zuckerberg wrote. The arrangement is to in the long run surrender control to an independent consortium of more than 100 organizations, with players like MasterCard, Visa, Uber, and Spotify previously having probably marked on.
Be that as it may, the dispatch of the Libra and Calibra was promptly met with extraordinary skepticism, particularly considering the Cambridge Analytica outrage and other client protection issues. Critics brought up that Calibra’s terms of service show that Facebook could utilize it to share client data and account data in specific conditions. What’s more, given Facebook’s billions of clients, it could make the organization a key player in advanced installments, expanding its officially huge influence in the public arena.
Facebook said that Libra “will be regulated like other payment service providers” and firewalled off from Facebook itself. However, neither the House Financial Services Committee, led by Democrats, nor the Republican controlled Senate Banking Committee, are convinced.
“If products and services like these are left improperly regulated and without sufficient oversight, they could pose systemic risks that endanger U.S. and global financial stability,” Maxine Water wrote. “Because Facebook is already in the hands of over a quarter of the world’s population, it is imperative that Facebook and its partners immediately cease implementation plans until regulators and Congress have an opportunity to examine these risks and take action.”