Facebook’s new blockchain project has been meeting with opposition after opposition, with pretty much every country authority deeming it as dangerous and concerning.
One of the few people to have praised Libra was the president of the Bank of England, but he is a lone voice among the criticism static that is the government officials.
According to reports, the United States Senate is also very concerned about the privacy and security of these new tokens and will be holding a hearing with Facebook on July 18th, to clarify all of the questions being asked by other authorities as well.
Many remember how the last Facebook hearing went, therefore the US authorities truly need to stack up with as much knowledge as possible in order to receive a satisfying answer from Facebook.
The primary concerns from the Senate are the usage of Facebook’s vast resources in order to spread the usage of blockchain. Channels such as Messenger, WhatsApp and Instagram all cover more than 2.5 billion people.
Despite the assurances from Facebook that Libra will be controlled by more than a dozen companies, the Senate is simply not satisfied with the information available.
Facebook will also be facing huge resistance in one of the largest markets in the world, India. When it comes to using the platforms as they are, the local government is completely fine.
But the injection of cryptocurrencies could potentially sever any and all ties Facebook has with the Indian market, due to its aggressive stance towards the blockchain.
Nevertheless, all we can do at this point is wait until the hearing occurs on July 18th, and hope that the concerns expressed by the government are legitimate, and not an attempt to chip away at such a potentially world-changing initiative.
