Facebook on Tuesday announced its plans for a long-awaited cryptocurrency project, Project Libra set to launch in 2020.
Libra will integrate with all of the company’s existing apps and services especially Whatsapp and will give direct competition to Bitcoin, XRP and Ether. However, US lawmakers aren’t all that excited by the idea as the social media giant as they do not trust Facebook’s security level to handle such a complex project. Maxine Waters, A Congresswoman, and Chair of the House Financial Services Committee is asking Facebook to pause its 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,” 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.”
She has also asked that Facebook executives meet the Committee to provide testimony on these issues.
Facebook is collaborating with 27 of its partners to launch Libra, which is expected to be integrated with Messenger and WhatsApp along with a digital wallet. Users will be able to use Libra to purchase products, perform cross border transactions and donations.
“The cryptocurrency market currently lacks a clear regulatory framework to provide strong protections for investors, consumers, and the economy,” Waters continued.
“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.”
Facebook and its privacy woes
Facebook still hasn’t completely recovered from Cambridge Analytica scandal. Waters added that the company has “repeatedly shown a disregard for the protection and careful use” of the data it holds on billions of people.
Waters is also backed by Patrick McHenry, a top Republican on the House Financial Services Committee, who has requested for a hearing on Libra.
“While there is great promise for this new technology in fostering financial inclusion and faster payments, particularly in the developing world, we know there are many open questions as to the scope and scale of the project and how it will conform to our global financial regulatory framework,” he wrote in a letter to the Congresswoman.
Libra also has trouble from lawmakers in Europe. According to Bloomberg, French Finance Minister Bruno Le Maire has disregarded cryptocurrencies and added that digital currency shouldn’t be seen as a replacement for traditional currencies.
Other than this, Facebook’s plan is to replicate the success of payments via social media in China, with an extra addition of Cryptocurrencies.
However, the consumers in the U.S. and Europe already have decent mobile-payment options using existing established currencies, regulations, and financial plumbing. Follow us on Twitter, Facebook, Steemit, and join our Telegram channel for the latest blockchain and cryptocurrency news