Consumer Advocacy Groups Issues Open Letter To Libra Association; Quit Facebook’s “Crypto” Project

  • Consumer Advocacy Groups want companies to quit Facebook’s Libra project
  • These groups claim this might not be the best option to back

A group of consumer advocacy groups is currently requesting companies part of the Libra Association to abandon the crypto-related project that Facebook started a few months ago. Facebook announced its cryptocurrency-related project on June 18 in which 28 different companies joined the governing structure.

Advocacy Groups Not Sure About Libra

According to an open letter that was signed by Open Markets Institute, Public Citizen Door Project and Demand Progress Education Fund, they request Facebook-backing firms to withdraw from the Libra project.

The letter shows that these advocacy groups are worried about the leadership structure of the company and how Facebook’s aims are still far from clear. Facebook has several billions of users on its platform from different countries and the Facebook project could have a negative impact on them.

About it, they mentioned:

“Members of the consortium actually have lots of questions too, similar to the questions that are being offered on this dais and they have great reservations about moving forward but they don’t want to be left out because of Facebook’s market power.”

Some of the companies that are part of the group of firms supporting Facebook’s digital asset include Visa, Mastercard, PayPal, Uber and many others. The advocates went on explaining that they understand that Facebook is a large company but they consider the best for these firms is to withdraw from the project to start an era of digital money that is based on fair rules and democratic deliberation rather than intimidation.

There are also some risks related to Facebook’s Libra that the advocates mentioned. These risks include the possibility for users to launder money, evade sanctions, and many other things.

Libra’s virtual currency is expected to be released next year as a stablecoin backed by the U.S. dollar, the British pound, the euro and the Japanese yen. At the moment there is no scheduled date for the official launch, but there are some regulatory issues that the company must solve with regulations before being able to start operating in the space.

There are several regulatory agencies around the world that are worried about the effects that this digital asset could have on the economy.

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