Until the United States gets done with their investigation of all the possible threats Facebook’s Libra project poses to the global economy, the house lawmakers have asked Facebook to pause the development of it along with its digital wallet, Calibra. Right when the project was announced, it was clear that an investigation will likely be taking place from the House of The Financial Services Committee.
The request was made via a letter addressed to Facebook CEO Mark Zuckerberg, Facebook’s Chief Operating Officer, Sheryl Sandberg, and the CEO of Calibra, David Marcus. The letter was sent by Rep. Maxine Waters (D-CA), along with signatures from the subcommittee members of House Finance. Waters showed concerns regarding the project’s own security along with the threat it poses to the US and Global economy. She quoted that improper regulation and insufficient oversight of a project like Libra could lead to potent threat to the economic stability. She referred to the vulnerabilities of other cryptocurrencies that were exploited badly by hackers on a global scale. Facebook too confirmed the hearing and a spokesperson stated that the company would be happy to work with the lawmakers and answer all their queries in the upcoming hearing. Mike Crapo, the Senate Banking Chair, will also be meeting David Marcus to discuss the possible risk for data privacy the currency poses right now on July 16th, a day before the hearing in the House Finance is expected to take place.
Talking of support for Facebook’s Libra project, a member of Binance Labs came out in support stating that Facebook’s entry will boost the Cryptocurrency market due to its rock solid popularity. He also settled down all the concerns regarding the centralization that Facebook might bring to the table saying that they’ll work along with Facebook to ensure that doesn’t happen.
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