The Strategist

US Congresswoman Waters: We cannot allow Facebook Libra to compete with the US dollar

06/21/2019 - 11:45

Member of the US House of Representatives Maxine Waters stated for the second time that Facebook should suspend development of its Libra digital currency so that US regulators have time to research the nature of the new chain.

“They must stop immediately so that we can sort it out… We must protect our customers. We cannot allow them to just go to Switzerland along with their partners and start competing with the dollar,” said Waters.

Congresswoman added that she was more worried about Facebook itself and not about its digital token. In particular, the Federal Trade Commission (FTC) is currently conducting an investigation into the social network, trying to detect violations of user data confidentiality. At the same time, the US Department of Housing and Urban Development also filed a lawsuit against the company for violating laws on leasing and selling real estate.

Note that on July 16, a hearing will be held at the US Senate Banking Committee, at which lawmakers will discuss Libra with representatives of Facebook. Probably among those invited to the hearing will be Calibra CEO David Marcus.

At the same time, Ohio State Senator Sherrod Brown said that Facebook had already become too powerful and too big.

Meanwhile, Head of Australia’s Central Bank, Philip Lowe stressed that there are a lot of questions on the part of regulators regarding Libra, so it’s too early to draw any conclusions.

In Switzerland, the responsible departments, in particular FINMA, are now communicating with representatives of the Libra Association to determine whether the organization’s activities and the digital currency itself should be regulated in accordance with their norms.

Recall, on June 18, Facebook introduced the concept of a global digital currency Libra based on the blockchain, in which members of the Libra Association will act as operators who have invested $ 10 million in the new coin.