Facebook's Libra plans are up against harsh criticism from lawmakers, as well as calls for investigation into potential consumer risks. The Libra cryptocurrency, formally announced last week, has some heavyweight backers like Visa, Mastercard and PayPal. Senator Sherrod Brown (Ohio) is the top Democrat on the committee, one of the first lawmakers to call Facebook out about the new product.
It seems Facebook won't be authorized to simply release Libra – its new cryptocurrency initiative. The U.S. Senate Banking Committee has scheduled a hearing to interview witnesses to the dealings surrounding the cryptocurrency that could finally go global, normalizing international finance. Thanks to theverge.com, we know Senator Sherrod Brown had this to say: “We cannot allow Facebook to run a risky new cryptocurrency out of a Swiss bank account without oversight. I’m calling on our financial watchdogs to scrutinize this closely to ensure users are protected.”
Calling A Halt
Senator Brown is not the only voice in the U.S. Senate who wants to look into Libra. Both the Chairwoman Maxine Waters (California) and Ranking Member Patrick McHenry (North Carolina) called for Facebook to testify before the House Finance Committee, even asking Facebook to halt development on Libra.
“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. 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.”
What Mark And Co. Had To Say
A Facebook spokesperson responded by saying that "We look forward to responding to lawmakers' questions as this process moves forward." The thing is, it doesn't seem Facebook is agreeing to halt its development of what some say is the future of global currency.