4 US House Reps Open Letter: Facebook’s Libra Has ‘Serious Privacy and Monetary Policy Concerns’
- An open letter has been issued to FB’s executive brass by Maxine Waters and her team.
- The letter was signed by multiple members of the committee and was sent across last night.
As many of our regular readers may already be aware of, Maxine Waters — Chair of the House Financial Services Committee — recently called for a meeting to discuss the development of Libra, Facebook’s much-hyped cryptocurrency offering. In this regard, Waters along with five other members of the FSC have recently submitted an open letter to the social media giant’s top brass, urging them to stop any development activities related to Libra until the committee can assess the situation with a little more clarity.
To further elaborate on the matter, we can see that the other senators who submitted the above stated letter along with Ms. Waters include:
- U.S. Rep. Carolyn Maloney (D-NY)
- U.S. Rep. William Lacy Clay (D-MO)
- U.S. Rep. Al Green (D-TX)
- U.S. Rep. Stephen F. Lynch (D-MA)
As per the letter, the Libra Association — which was founded in Switzerland during the start of this year — is looking to create a cryptocurrency that has the potential/intention to rival the US dollar.
On the subject, the letter reads as follows:
“This raises serious privacy, trading, national security, and monetary policy concerns for not only Facebook’s over 2 billion users, but also for investors, consumers, and the broader global economy,”
Other Key Points Worth Noting
The letter points out that the Libra ecosystem could slowly transform into an ”under-regulated monetary platform” that could potentially be used by a lot of nefarious agents to facilitate illegal activities such as money laundering.
The signatories also highlighted the 2016 Cambridge Analytica saga that revealed FBs role in manipulating user data to influence voting behavior.
Since the start of the year, the social media juggernaut has eliminated over 2 billion fake profiles from its platform.
Waters and her team also pointed out that over the first three quarters of 2018, hackers were able to swindle over 1 B from Facebook’s coffers.
In the letter, US lawmakers have stated that before Libra’s development can continue any further, they would like to hold “public hearings” so as to find legislative solutions to the threats that Libra currently poses to the US financial ecosystem.
Lastly, it is worth mentioning that the open-letter closes out with the following statement:
“Failure to cease implementation before we can do so, risks a new Swiss-based financial system that is too big to fail,”.