Congress under pressure to halt Facebook Libra coin until July

July 3, 2019, | AtoZ MarketsOver 30 advocacy groups put the Congress under pressure to halt Facebook Libra, with a request, which signatories sent to the bicameral legislature of the U.S. Federal government this week. 

Facebook Libra coin under investigation 

In the request, the signatories called on Congress and regulators to impose a moratorium on Facebook Libra coin and related plans until the profound questions raised by the proposal are addressed.

The advocacy groups also urged, in their letter, Facebook CEO Mark Zuckerberg and the company to halt the implementation of their plans for the Facebook Libra coin until the US authorities have an opportunity to assess and react to a more detailed presentation than has yet been made public. 

In their call to the U.S. Congress, the initiative group named a number of questions the signatories say need answers before Facebook Libra coin can proceed. The questions the group mentioned are related to the following topics:

  • national sovereignty;
  • corporate power; 
  • consumer protection; 
  • competition policy; 
  • monetary policy; 
  • privacy and more. 

US Senate will hear the testimony on Facebook Libra coin that is expected to be launched in 2020, on July 16, 2019. The hearing which is yet to have any witness will be webcast on the committee’s official website, the overseer of the Libra project, David Marcus will be there to testify at the hearing. 

Facebook Libra coin potential use in illicit financial operations

At the briefing on the use of AI and Machine learning, in June,  Director of the Financial Crimes Enforcement Network Kenneth Blanco discussed Facebook Libra coin potential use in money laundering and other related activities.

While speaking of Facebook Libra coin potential use among crypto scammers, Representative, Emanuel Cleaver II noted that the social media giant has already shown its inability to identify and impede crypto fraudsters at an acceptable level.

The representatives of the Bank of England also took a quite tough stance toward Facebook Libra coin launch announcement. The UK officials outlined, although they are willing to consider Libra coin advantages, the social network shouldn’t see this as an opportunity to simply do whatever it wants.

In addition, Francois Villeroy de Galhau, the Governor of Bank of France, has recently revealed plans to form a new G7 crypto task force to examine regulatory issues related to cryptos, including  Facebook Libra coin.

It would be hard not to notice that concerns of the national authorities about Facebook Libra coin are still strong. However, would it halt Facebook Libra coin launch? Only time will show.

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