Congress Representative Wants Facebook to Put a Hold on Cryptocurrency Plans

French Minister of Economy to Ask for Guarantees From Facebook In Regards to Its Forthcoming Coin

Facebook Targets Bitcoin with New Cryptocurrency

However, the social networking site has reportedly been in talks with regulators about its cryptocurrency plans.

Also, today (June 19), the U.S. Senate Banking Committee announced that it will hold a hearing ("Examining Facebook's Proposed Digital Currency and Data Privacy Considerations") on July 16 to discuss Libra.

The announcement of a new currency led by Facebook has caught the attention of U.S. law-makers and not in a good way.

Representative Maxine Waters, chairwoman of the US House Financial Services Committee, called for Facebook executives to testify before Congress and asked the company to halt development of Libra.

"It is incumbent upon us as policymakers to understand Project Libra". He said the new cryptocurrency would give Facebook competitive advantages with regard to collecting data about financial transactions, as well as control over fees and functionality.

"It is out of question that Libra becomes a sovereign currency", Le Maire was quoted in an interview on Europe 1 radio.

"I would echo what Governor Carney said [Bank of England], we will end up having quite high expectations from a safety and soundness and regulatory standpoint if they do decide to go forward with something."

"It does seem clear that something like this could be very important from a regulatory point of view", he said. But the news has led to some questioning what Libra's introductory offering will be and how Facebook's new crypto will affect bitcoin's price.

Facebook will also build a digital wallet for Messenger and WhatsApp, called Calibra, allowing users to send money to friends, family, and businesses through those apps. A draft bill also seeks to make trading, buying cryptocurrencies as illegal. Mrs Waters said that Congress should evaluate and review the project before Facebook gets a green light. "We need to talk to people, meet with people and that's what we're doing and we are then going to launch", she was quoted as saying.

"It is frankly baffling to me that a company with a massive data privacy problem launched a non-private global currency", said Matthew Green, associate professor of computer science at the Johns Hopkins Information Security Institute in the United States, via Twitter.

Despite downplaying the possible effects of the currency, Powell also expressed concern that amid its benefits, Libra could also bear potential risks because of the size of Facebook's influence on the global community and the potentially "large application" of the cryptocurrency. "There will be plenty of competition".

Latest News