The fight between Facebook and Rep. Maxine Waters over Libra is getting bigger.
Libra Just Keeps Stirring the Pot
A few weeks ago, Live Bitcoin News published an article explaining that Congresswoman Maxine Waters – along with several other government associates – had sent a letter to Facebook asking that its executives ease up on their plans for Libra indefinitely until Congress could fully understand the cryptocurrency’s properties and goals.
Libra is the official cryptocurrency of Facebook. Set to make its debut in 2020, the cryptocurrency will allegedly serve as a means of payment for users of the social media conglomerate’s WhatsApp system. They will be able to make purchases through the application, as well as through merchants’ websites that offer Facebook login options with Libra.
Unfortunately, Facebook has been marred by scandals over the past few years, the biggest one being Cambridge Analytica, which has caused many users to determine that the company would be too dangerous as a financial services provider. Among those uncomfortable with the company’s newfound power are Maxine Waters and several of her associates, but Facebook isn’t fully willing to play by their rules.
David Marcus, the head developer of Libra and a former executive at PayPal, has responded to Waters to explain that the company is doing everything it can to develop Libra in an appropriate and moral way. He states:
I want to give you my personal assurance that we are committed to taking the time to do this right… We understand that big ideas take time, that policymakers and others are raising important questions, and that we can’t do this alone. We want and need governments, central banks, regulators, nonprofits and other stakeholders at the table and value all the feedback we have received… Libra is about a big idea. The goal of the Libra Association is to reduce transaction costs and expand access to the financial system using blockchain technology.
Unfortunately, Waters and the House Financial Services Committee that she heads remain unconvinced. In response, Waters explains that the company is potentially in violation of several consumer protection laws, stating:
With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users.
What Will It Take to Get Things Going?
Marcus is scheduled to speak before the Financial Services Committee this coming week to address any issues or questions representatives may still have. He has also explained that Facebook will only be one stakeholder in the Libra Project, but this creates additional problems for Marcus and his team.
This is primarily because several credit card and financial companies, such as Visa and Mastercard, will hold sway in the project, suggesting that Libra will potentially be controlled by multiple entities and be a centralized digital asset.