Facebook is no stranger to\nWashington’s ire, and this time its stablecoin is on the receiving end. In a\nletter from 30 Democrats associated groups, the California based social media\ngiant has been asked to halt the Libra project. The letter states that the\nstablecoin project has raised \u201cprofound questions,” which need to be\naddressed first.<\/p>\n\n\n\n
The letter<\/a> sent to the chairpersons of five congressional committees asked Facebook to reveal Libra’s full plans.\u00a0 Maxine Waters, the Chairwoman of the House Financial Services Committee, could not agree more. She earlier on had asked<\/a> regulators to suspend the project too. \u00a0<\/p>\n\n\n\n Waters and other Democrats collectively reached out to Zuckerberg, the CEO Facebook<\/a>, and his C level team on Tuesday. In a letter to the team, the Maxine Waters led initiative asked the social networking service company to allow regulators to, first of all, examine issues surrounding Libra before launch.<\/p>\n\n\n\n The group further said<\/a> that Libra has:<\/p>\n\n\n\n \u201ca serious privacy, trading, national security and monetary policy concerns for not only Facebook\u2019s over 2 billion users, but also for investors, consumers and the broader global economy.\u201d <\/p><\/blockquote>\n\n\n\n The Libra project has become a very divisive topic in the crypto world. Some of the token’s fans have defended the political onslaught against the token. They have decried the government’s need to forcefully control the project and thwart its competitiveness against the USD. Every Libra token is backed by USD and is amenable to strict KYC rules<\/a>. It should, consequently, be allowed to function just as other stablecoins do.<\/p>\n\n\n\n The major of crypto fans, however, seem disconcerted by Libra<\/a>. They generally feel that Libra should not be classified as a cryptocurrency. It lacks the full merits of a decentralized currency. As an illustration, the token’s validators are chosen amongst its founding members. This factor could turn Facebook into a strong malicious actor in digital assets sphere. <\/p>\n\n\n\n The skeptics further feel that it is\nonly fair that the government wants control over a currency that could be used\nas a pawn by its creators. The aspect of policing and keeping a giant private\ncompany accountable is too tricky, especially when that company holds people’s\nprivate financial data. <\/p>\n\n\n\n Facebook’s has been under a lot of lawmaker criticism for its many weaknesses. Chief amongst them has been its data breaches. Consequently, the social media giant has in the past been accused of allowing Russians<\/a> to hijack its platform and subvert the 2016 US election. The Democrats have used these same failures to go for Libra’s jugular. The Cambridge Analytica–Facebook scandal could be what these lawmakers use to halt the project. <\/p>\n\n\n\nCrypto World Reacts to Facebook’s Libra<\/h2>\n\n\n\n
Facebook’s Violations Hurting Libra<\/h2>\n\n\n\n