Facebook’s Libra Movement Receives Backlash In Washington About Cryptocurrency Project
Facebook’s Libra plan has once more been criticized. This time, however, the complaints do not come from the crypto community, which is fairly negative on the whole project, but from the government of the United States.
A letter signed by over 30 influential groups in Washington was recently sent to Facebook. The letter demanded the project to be halt immediately as there were “profound questions” about the project, as reported by Bloomberg.
This letter was signed by five congressional committees’ leaders and the main point was that the regulators were simply not prepared to deal with something like the Libra project right now.
In their view, the project of the social network company would still need to address some questions and concerns before the project could be allowed to move forward and be really launched in the United States.
Maxime Walters, the House Financial Services Committee Chairwoman, affirmed that she believed that Facebook’ Libra posed a risk that was simply too big to be allowed to go forward with so many questions without a proper answer.
Facebook did not publicly respond to the letter until the time of this report.
Facebook’s Libra Will Have A Hard Time Being Regulated
If cryptocurrencies posed a huge problem for regulators who were uncertain of how to deal with them, the truth is that Libra is possibly even more troublesome, mostly because Facebook is huge. The reach of a project such as this one is unseen in history and we all know that Libra has the potential to reach even more people than Bitcoin did.
When that happens, how will the world react? Facebook has announced the Libra Association, which has companies such as Mastercard, Visa, Paypal and Uber in its ranks, but most people are still afraid that the new token could be way too centralized.
Governments such as India have already indicated that maybe Facebook’s Libra will not be welcome there, while other governments, such as the Russian, will treat it just like any other crypto.
The United States will possibly provide a good thermometer for how difficult it will be for Facebook to get approval and, so far, it does not really seem that it will be very easy. Libra is still far from its launch but the team behind the new cryptocurrency already has a lot of problems to solve.