The United States Senate committee on banking has announced that Facebook will testify before it, concerning the much speculated Libra coin.
June 21, 2019 | AtoZ Markets - On July 16, the US Senate will hear the testimony on Facebook's Libra coin that is expected to be launched in 2020 after the white paper was released on the page dedicated to the project. Since late 2018, the speculation of a new cryptocurrency that will be launched by the tech firm Facebook permeated everywhere on the crypto space. After the development of its blockchain Libra-network, it was reported that Facebook will create a global cryptocurrency called 'Libra'. The highly anticipated project is now set to face the US Senate of Banking to explore the project and discuss its potential risks.
Facebook Libra Coin Senate hearing
The hearing which is yet to have any witness will be webcast on the committee's official website. According to the source of the news, the overseer of the Libra project, David Marcus will be there to testify at the hearing. The project could be put on hold until the end of the hearing.
The committee has asked that the project be paused indicating that the hearing could cause some financial vulnerabilities. Facebook received an open letter last month from the committee to which they have not yet answered. The letter asked important questions about the Libra project. Meanwhile, the social media giant has promised to address the Senate's questions but will keep the project going.
The Facebook Libra project which has partnered with Moneygram, Paypal and other 25 collaborators which include the major payment processing firms, is well known by the Federal Reserve. In one of his speeches, the Fed chair informed the public that the Central Bank was consulted before Facebook started the project. The Libra wallet will be launched first on Whatsapp, Messanger and a separate App designed for it in 2020.
Foreign regulators are doubtful
Although the US regulators sanctioned the project, foreign regulators have expressed their doubts about it. In an industry like the Cryptocurrency and given Facebook's last year battle concerning the misuse of users' information, there will be initial doubts. The French minister of the Economy has asked about the guarantee of the Libra project. Russia has already declared that the project will not be legalized in the country. Meanwhile, the project is focused on countries where money transfer is expensive. Meanwhile, it has been reported that the project will not be accepted in countries where cryptocurrencies are banned. India is one of such countries despite being one of the major potential beneficiaries due to its high cost of money transfer. After the hearing, it remains to be seen how the project would be accepted by the industry and the regulators.