Congressional lawmakers have called on Facebook to cease work on its proposed cryptocurrency, citing the social media giant's recent travails over privacy issues as a glaring threat to the functioning of the world economy.
While Facebook has published a "white paper" on these projects, the scant information provided about the intent, roles, potential use, and security of Libra and Calibra exposes the massive scale of the risks and the lack of clear regulatory protections, the letter contends.
But in a letter sent to Facebook, the Democratic heads of the House Financial Services Committee asked the company to "immediately cease implementation plans" for Libra so regulators can explore concerns including hacking, data security, and global financial security.
Marcus remarks come as United States lawmakers and nonprofits press the company to answer questions about the project, including why they should trust Facebook's vow that it will not use data from its digital wallet.
Lawmakers aren't the only one wary about the project. The social network expects to launch the crypto and its digital wallet next year, with the plan being to eventually hand control over to an independent consortium of over 100 companies, including Visa, Mastercard, PayPal, and Uber Technologies. But with Facebook not exactly having the best reputation when it comes to respecting privacy, and the fact it already has so much global influence, there are concerns over Libra.
Facebook executives will have a chance to answer questions about Libra later this month. Besides every new criticizing remark, Facebook isn't stepping back from what it committed to bringing to the 1.7 billion unbanked users.
The chair of the Committee, Maxine Waters has announced plans to convene a full Committee hearing entitled, "Examining Facebook's Proposed Cryptocurrency and Its Impact on Consumers, Investors, and the American Financial System" on 17 July. Marcus said he looks forward to testifying in both hearings and engaging with lawmakers, regulators and banks.