Libra will be closely monitored by the U.S treasury confirms a letter written to Missouri’s fifth district Congressman, Emanuel Cleaver. This was made public on Cleaver’s website noting he had earlier written to various bodies seeking them to keenly watch Libra’s activities.
The Congressman had voiced concerns that Libra might disrupt the world’s monetary system if not kept under the watch radar of authorities like Financial Stability Oversight Council. This prompted a response from the U.S Treasury which acknowledged the systemic risk posed by Libra and the probability of it being past the regulatory scopes of most financial market authorities as of press date.
Libra has been in turn forced to postpone its token launch following an uproar by regulators across the board. The project is now addressing its shortcomings within regulation to fit a description that will impress watch dogs particularly the United States Congress. One of the main issues that Cleaver noted was Facebook’s major involvement in the project; the Congressman said the Tech giant has very big active client base whose reaction would cause a shift in existing ecosystems.
This comes a day after Facebook’s, Mark Zuckerberg, appeared before the Financial Services Committee. He was put to task when asked to commit that Libra will not be a money laundering or terror financing avenue. The Facebook CEO gave the House his word that they will keep Libra within digital wallets that are highly KYC and AML compliant although he wasn’t speaking for the whole Calibra Association.
