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It appears Facebook’s Libra has fewer fans than we originally assumed.
Libra Is Failing to Convince Us of Its “Do-Good Attitude”
Recently, a letter written by members of over 30 policy groups arrived in Congress, asking representatives to get in the way of further Libra developments. They simply don’t trust Facebook to get its financial ambitions right, given the company’s long list of ongoing scandals and problems.
Facebook is looking to take over the world of digital finance through Libra. The cryptocurrency system will operate primarily through the company’s WhatsApp platform, which individuals can utilize to pay for goods and services with the digital asset. In addition, they’ll also be able to use Libra to pay for items on merchants’ websites that offer Facebook login options.
The development of Libra is designed to give users a chance to take back their financial freedom. The problem, however, is that Facebook has been hit with accusations regarding its lack of regard for privacy. Following last year’s scandal with Cambridge Analytica, many people simply don’t trust the company to do the right thing and aren’t comfortable offering up their financial data so quickly.
In addition, former Facebook execs have emerged to comment on the company’s financial plans, calling them “frightening” and asking that Congress work to break up big tech companies, thereby preventing Facebook from having too much power.
Among the groups that penned the letter are Public Citizen, the Economic Policy Institute, the Center for Digital Democracy, and the Electronic Privacy Information Center. The document, which states that Congress should intervene and prevent Facebook from developing Libra further until “serious questions” can be answered, explains:
The U.S. regulatory system is not prepared to address these questions, nor are the regulatory systems of other nations or international institutions. All of us believe the risks posed by Facebook’s proposal are too great to allow the plan to proceed wit so many unanswered questions… We have too much recent experience with insufficiently regulated financial markets spinning out of control to let this happen again. The Facebook proposal must be put on hold until these numerous and fundamental questions are resolved.
You Must Understand Something Before You Can Build It
At press time, lawmakers in Congress are calling for Facebook’s primary executives to testify on Libra’s behalf. One executive, which has not yet been named, will testify before the Senate at the end of this month. Among the questions the 30+ policy groups are asking include how Facebook’s Libra currency can be manipulated, if it can be used for money laundering or other illicit purposes, and if it’s “covered by consumer protection laws.”
Libra will allegedly be backed by a large nonprofit organization comprised of executives from Uber, PayPal, Visa and other conglomerates throughout the U.S.