Congress against cryptocurrency Libra

Published on: 10 Jul, 2019

Facebook Inc. (NASDAQ: FB) had recently announced that it will push out its own form of cryptocurrency called Libra on June 18th of this year. It is said to allow users to incorporate Libra in their daily lives where transactions will be done online including the usage of the cryptocurrency internationally. As Bitcoin prices continue to surge, Facebook is looking to capitalize on the cryptocurrency craze.

However, a subcommittee from Congress has asked Facebook to halt any movement forward on the social network's upcoming cryptocurrency because of the lack of security. A letter signed by Representative Maxine Waters, Chairwoman of the Committee on Financial Services, was sent publicly to the executives of Facebook stating that the cryptocurrency would rival monetary policies of the nation as well as the United States dollar due to the fact that its financial system would be based out of Switzerland.

The letter also considered the privacy and security of the information of over 2 billion users of Facebook without the necessary regulatory protections as well as the Cambridge Analytica scandal that the company faced last year. Facebook's digital wallet could potentially store trillions of dollars without depository insurance which could threaten the U.S. as well as global financial stability. A Facebook spokesperson has stated that they are going to work with lawmakers, answering any questions they may have in order to further progress their plans forward.

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