U.S. House Financial Services Committee Asks Facebook to suspend Libra

Today U.S. House Financial Services Committee sent a letter to Facebook asking it to stop any movement forward on Libra– its proposed cryptocurrency and Calibra-its proposed digital wallet. As they explain in the letter:

It appears that these products may lend themselves to an entirely new global financial system that is based out of Switzerland and intended to rival U.S. monetary policy and the dollar. This raises serious privacy, trading, national security, and monetary policy concerns for not only Facebook’s over 2 billion users, but also for investors, consumers, and the broader global economy.

Libra May be Targeted

Furthermore they also mentioned some of Facebook’s failures of the past, suggesting that Facebook is not trustworthy enough and can even attract more hackers because now money are involved.

“Those using Facebook’s digital wallet – storing potentially trillions of dollars without depository insurance– also may become unique targets for hackers.” Continuing, “These risks are even more glaring in light of Facebook’s troubled past, where it did not always keep its users’ information safe. For example, Cambridge Analytica, a political consulting firm hired by the 2016 Trump campaign, had access to more than 50 million Facebook users’ private data which it used to influence voting behavior. “

The Chairwoman has also 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 Wednesday, July 17.

Until now there is not any official announcement by Facebook responding to the letter request.

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