US House Financial Services Committee To Hold Hearing On Facebook’s Libra Cryptocurrency

  • Regulators in the U.S. will be discussing Libra’s influence in the market
  • The goal is to be able to regulate it and protect users

The U.S. House Financial Services Committee is expected to be holding a hearing on Facebook’s new virtual currency Libra. This is going to be held on July 17 according to a press release unveiled on June 24. This announcement comes after the announcement made by Facebook informing about the creation of its digital currency and network Libra.

Regulators To Discuss Libra’s Digital Currency

Some time ago, the committee chairwomen Rep. Maxine Waters, requested the social media network to stop working on Libra until Congress and regulators were able to scrutinize the proposal.

About it, she commented:

“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action.”

In addition to it, Waters explained that there is a lack of uniform regulations in the crypto market. Moreover, regulators should get serious about the privacy concerns related to digital assets such as Libra. Cryptocurrencies have also other risks related to trading and security issues.

On July 16, in a session called “Examining Facebook’s Proposed Digital Currency and Data Privacy Considerations,” the Senate Banking Committee is expected to hear the details of the Libra project and discuss privacy and data issues about it.

There are different regulators around the world that have already expressed their concerns about this virtual currency that Facebook is working on. France, for example, wants to create a G7 taskforce that will be operated under Benoit Coeure, with the intention to regulate cryptocurrencies through central banks.

The Governor of the Bank of England, Mark Carney, explained that he is open mind about Facebook’s Libra project but he is not open doors. Moreover, the Chairman of the Russian State Duma Committee on Financial Market Anatoly Aksakov said that Facebook’s digital currency Libra will not be legalized in Russia.

The Libra digital currency is going to be working in a different way to traditional cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH). Facebook is going to establish a basket of fiat currencies in order to provide stability to this digital asset. It is expected for the virtual currency to be used in WhatsApp and Facebook Messenger for users to make transactions and process seamless payments.

There were also many comments regarding how this virtual currency is expected to affect the crypto market and other digital assets, including Bitcoin. There were analysts that suggested it had a positive effect on Bitcoin while others considered it could not be good for the whole space.

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