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Facebook’s Libra receives flak from US legislation: Asked to put a stop to its developments

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A week after officially announcing its launch, Facebook’s very own cryptocurrency Libra runs into more trouble with US lawmakers demanding the social media giant to halt all developments in this regard. Owing to Facebook’s previous defamation lawsuits concerning user data breach and privacy violations, statesmen from both Republican and Democratic parties have cast a no-confidence vote on Facebook’s digital currency.

Reactions from law officials

Congresswoman Maxine Waters, chair of the House Financial Services Committee (HFSC), published an official statement “Considering the fact Facebook has run into crisis over data-sharing scandals in past, I am not fully convinced of its capability in launching and operating a systemic currency. Therefore, I request the company to halt any movements forward and wait for clearance from regulators.”

Meanwhile, Patrick McHenry from Republican party has voiced his concerns over the degree of impact the currency will have on the world economy. In his statement, he said, “Although Facebook’s new cryptocurrency has the potential to transform the face of payment modes in this digital era, the question remains whether or not it will comply with complex international financial regulations.” Considering the massive scope of the project, McHenry further insists on fully evaluating its strengths and liabilities.

Facebook’s infamous past

Apart from expressing the anxiety over the digital currency’s impact on the economic stability of the country, the senators are bringing up Facebook’s past into their arguments.

When Cambridge Analytica’s story about exploiting the data of millions of Facebook users for political campaigning broke out last year, Facebook underwent a devastating line of questioning over its security standards. A year after the shattering revelations, the company is yet to reform its data policies.

“In light of the aftermath of catastrophic data privacy scandals that Facebook has faced in its past, it is going to be an arduous undertaking for the firm to change the perception of the public and gain back their trust”, asserts Sen. Mark Warner.

Meanwhile, as the social media company expresses its readiness in responding to the concerns raised by lawmakers, the world will have to wait and see if the Libra project really kicks off.

 

 

 

 

 

Manasee Joshi

Manasee Joshi

An avid reader and an enthusiastic writer, Manasee recently chose to dedicate her time doing freelance writing. A degree in English literature and experiences in Administration, HR, finance, literature, creativity and innovation tucked under her belt, she crafts engaging and compelling content for crypto and blockchain audience.

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