Libra, one of the most aspirational projects of Facebook which would propel it in the financial demographics and crypto banking services has run into a number of roadblocks ever since its announcement. As per a recent report from Bloomberg, Sheryl Sandberg, the chief operating officer of social media giants is set to appear before Congress towards the end of October to testify about the stablecoin project and the impact of Facebook’s market power.
Earlier in July, the then Calibra-project head David Marcus also testified before the U.S. House of Representatives and the U.S. Senate facing a grueling session on the motive behind the project and its impact on the existing financial infrastructure. Marcus was grilled on different aspects of the project and the concerns of regulators around the globe.
Ever since Facebook announced its plan on launching a “social media‘ translatable sablecoin backed by a basket of national fiat currencies, regulators around the globe started to point out several concerns behind such a working model. Libra has accused of piggy-riding the existing financial infrastructure for which banks and financial institutions pay in billions for compliance. Many politicians and regulators have called for a total halt of the project as it threatens the monetary sovereignty and financial stability of the nation.
The slew of criticisms from around the globe is now threatening a delay in launch scheduled for 2020. Mark Zuckerberg had assured that Libra would only go ahead with the launch after addressing all the concerns related to it.