A recent update of the Facebook new vision, of planning to launch a new cryptocurrency known as Libra in 2020 has not pleased many. It has left the US Lawmakers with many questions an answered. Facebook was therefore asked to call off its process of developing the new digital coin by Rep. Maxine Waters, who chairs the House Financial Services Committee, adding that Facebook has an endless list of scandals.
Facebook is said to be working with 27 partners to successfully launch Libra that will be released together with a newly developed digital wallet that works with WhatsApp and Messenger. According to Facebook, all users will be able to use the new digital coin to purchase products, make a donation, or even send money across borders.
Waters, therefore, stated that Facebook continues to extend its reach into the lives of its users worldwide with its unchecked expansion that she considers as a risk since it opens doors to dangerous activities.
“The cryptocurrency market currently lacks a clear regulatory framework to provide strong protections for investors, consumers, and the economy. Regulators should see this as a wake-up call to get serious about the privacy and national security concerns, cybersecurity risks, and trading risks that are posed by cryptocurrencies, “Waters said. Facebook cryptocurrency project has left the lawmakers with no choice, but to highlight some of the challenges that the giant social media could face, if it pushes through with its plan to launch Libra.
A California Democrat stated that Facebook has repeatedly shown carelessness for the protection and the use of this data. Federal Trade Commission has been investigating Facebook for failing to protect user’s privacy and that the social media company could face a record-setting fine of $5 billion from FTC. Last year the data of up to $87 million users was harvested without the consumer’s permission, the harvesting was done by the UK political consultancy Cambridge Analytica.
The top Republican on the House Financial Services Committee, Rep. Patrick McHenry, also requested a hearing on Facebook and its cryptocurrency project whereby the Facebook executives are needed o testify before the committee.
According to Waters, Facebook should not push through with its plan of creating a new digital coin until Congress and regulators examine some of the issues she brought up.
Reportedly, this is the second time lawmakers concern about Facebook‘s cryptocurrency plans. Back in May the lawmakers on the Senate Committee on Banking, Housing, and Urban Affairs demanded answers from Facebook concerning the cryptocurrency project, they wanted to know what privacy and security will be available to protect its users, despite the fact that the cryptocurrency project could keep consumers on the platform for long and generate revenue outside of advertising.