Facebook has been told by Congress to put on hold, its plans of launching the Libra cryptocurrency. The proposed moratorium is to take effect until after the house and senate committees, as well as U.S. regulators have made a thorough review of the Facebook cryptocurrency platform, specifically its data security system.
In a rare show of agreement, Republican and Democratic lawmakers alike, have aired concerns over the social media site’s plan of operating and offering its own cryptocurrency; citing greater risks of breaching data privacy and security.
Senior Republican Representative Patrick McHenry, who heads the House Financial Services Committee, communicated to Representative Maxine Waters (D-Ca), the need to call hearings on FB’s Libra cryptocurrency initiative.
In a statement, Rep. Maxine Waters, who chairs the House Financial Services Committee,announced that a hearing focused on Libra is set on July 17. Until such time that details about Facebook Inc’s planned cryptocurrency offering has been completely clarified.
Committee Chairperson Waters intends to hear testimonies and explanations about Libra, from Facebook executives, in light of the social media site’s repeated history of showing disregard for protecting and ensuring secure use of data.
That being said, Rep. Waters instructed the company to
”suspend development of the cryptocurrency platform, until more details about Facebook’s intentions on Libra are made clear.”…“Given the company’s troubled past, Facebook should agree to a moratorium in advancing further development on the Libra cryptocurrency until Congress and U.S. regulators complete their examination of such issues and of the actions to take”
Foreign Backlash vs. FB’s Libra Cryptocurrency Project
Concerns are being raised not only by U.S. lawmakers, but also foreign legislators. Senior German lawmaker of the European parliament, Markus Ferber, stated that Facebook’s potential launch of the Libra cryptocurrency should prompt regulators to be on high alert; whilst calling on the EU Commission to immediately work on a regulatory framework for governing virtual currencies.
Minister Bruno Le Maire, head of France’s Economy and Finance Ministry, is calling for stricter regulation of technology companies, particularly the digital giants. In an interview on Europe 1 radio, the French Minister remarked that
The introduction of Libra, as an instrument for financial transaction will empower Facebook to collect millions and millions of data…strengthening my conviction that there is a need to regulate the digital giants”