Facebook Cryptocurrency Sends Shivers Across Politicians and Regulators

Not everybody is happy with Calibra, Facebook’s hugely-awaited cryptocurrency platform.

Soon after the social media behemoth unveiled the technical paper of its global currency project, it scared a handful of politicians and regulators across the world. Lawmakers from Europe were the first ones to issue stern feedbacks, with French Finance Minister Bruno Le Maire stating that Facebook’s cryptocurrency, dubbed as Libra, should not become a sovereign currency.

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Le Maire furthered his concerns to the governors of the Group of Seven central banks. He called out to the monetary system’s guardians to prepare a report on Calibra for their July meeting.

Libra also became the center of attraction at the European Bank’s annual conference in Portugal, where Bank of England Governor Mark Carney confirmed that the Facebook coin would need to go through the “highest standards of regulation.”

“A Swiss Account without Oversight”

Sentiments were the same 4,500 miles away in Washington, where Democratic Rep. Maxine Waters, chair of the House Financial Services Committee, requested Facebook to halt the development of Libra.

“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action,”

Waters on Tuesday.

Meanwhile, Rep. Patrick McHenry, the ranking Republican on the committee, praised Facebook for its vision of “financial inclusion and faster payments.” But he too wondered how Libra would cater to their global financial regulatory framework.

“We need to go beyond the rumors and speculations and provide a forum to assess this project and its potential unprecedented impact on the financial system,”

said McHenry.

US senators Sherrod Brown and Mark Warner also showed skepticism, questioning why people should trust Facebook with their money especially after how the social media firm failed to keep their private data secure.

“The idea that we are going to turn over our financial data and information to that company, I think they have a big uphill effort to try to convince Americans that they ought to trust in Facebook’s proprietary interest in keeping your data secret,”

said Warner.

At the same time, Brown rejected Libra as a Swiss account without oversight.

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