US lawmakers Are demanding scrutiny — & even A freeze — Of Facebook’s cryptocurrency projectBusiness Insider #It_IndicatesJune 19, 2019
On Tuesday, the Silicon Valley social networking giant officially unveiled Libra — its plan for a new digital currency that aims to enable cheap and easy payments around the world, while being jointly managed by a consortium of big corporations (including Mastercard, Uber , PayPal, and Spotify ) via the Libra Association.
Democratic congresswoman and House Financial Services Committee Chairwoman Maxine Waters has called for the company to pause its plans until regulators can take a look.
“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.”
The announcement of Libra comes at a politically sensitive time for Facebook.
Facebook — and other big tech companies — are also facing unprecedented scrutiny over their size and power, and growing calls for antitrust action to be taken against them.
US Senator Sherrod Brown, ranking member of the US Senate Committee on Banking, Housing, and Urban Affairs, also raised concerns over oversight of the digital currency.
“Facebook is already too big and too powerful, and it has used that power to exploit users’ data without protecting their privacy.
I’m calling on our financial watchdogs to scrutinize this closely to ensure users are protected,” he said in a statement.
There has also been early alarm bells rung by politicians in Europe .
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Bitcoin is unique in that there are a finite number of them: 21 million. Satoshi Nakamoto, bitcoin’s enigmatic founder, arrived at that number by assuming people would discover, or “mine,” a set number of blocks of transactions daily.
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