Facebook yesterday announced their own cryptocurrency Libra and wallet Calibra. But looks like US lawmakers aren’t happy with this idea and Congresswoman Maxine Waters, chair of the House Financial Services Committee asked Facebook to pause the project.
“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. The cryptocurrency market currently lacks a clear regulatory framework to provide strong protections for investors, consumers, and the economy,” Waters said in a statement. “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”
Waters has also asked that Facebook executives come before the Committee to provide testimony on these issues.
Just for a reminder, Facebook will launch their cryptocurrency and the wallet in 2020. Facebook has partnered with 27 companies including Visa, Mastercard, Lyft, Spotify. Facebook has a plan to integrate the service into Messenger, WhatsApp and later on Instagram.
US lawmakers are concern about Facebook’s past record how they had handled the user data. Waters has pointed to Cambridge Analytica Scandal by saying “Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data. It has also exposed Americans to malicious and fake accounts from bad actors, including Russian intelligence and transnational traffickers.”
Libra also has the attention of lawmakers in Europe, with calls for tighter regulation emerging from French Finance Minister Bruno Le Maire, who according to Bloomberg said the digital currency shouldn’t be seen as a replacement for traditional currencies.
While Facebook is trying so hard to gain user trust, this incident will surely be going to hurt Facebook. We only can hope that Facebook will come up with a better plan and security arrangement. Keep an eye on our site for further information. You will let you know as soon as we find something new.