After the meeting held at Switzerland, where Facebook’s cryptocurrency is headquartered, the US lawmaker insisted that he was still in doubt about Libra.
Despite the fact that Facebook’s Libra is backed by reputable payment companies including Visa, Mastercard, PayPal and Uber, the chair of the US House Financial Services Committee Maxine Waters said on Sunday that she was still not clear about Facebook’s plan for a fiat currency.
“While I appreciate the time that the Swiss government took to meet with us, my concerns remain with allowing a large tech company to create a privately controlled, alternative global currency,” she said in a statement.
The social network had announced in June its plan to launch a new digital coin called Libra in 2020. The firm has managed to get the backing of some reputable financial and internet services firms for the project. Facebook’s coin is looking to have a B2B network that will make other cryptocurrencies depreciate in value. It hopes to influence the numerous subscribers it has on its platform. With over 2.28 billion Facebook users, the social network believes that a large fraction will be open to adopting its cryptocurrency.
With reputable financial firms on its side, Facebook is working to get Washington on its side. Policy makers are worried about the widespread effect that the company already has by the number of users on its platform. Facebook said that the currency will be issued and managed by Geneva, Switzerland-based Libra Association.
Contrary to what the US lawmaker said during the meeting, Facebook said that the officials in Switzerland were helpful in understanding the complexity and status of Facebook’s plans.
The social network has weathered heavy criticisms from politicians over its scandals and incredibility concerning users’ data. Facebook has proven over and over that users’ information are not entirely safe, much less competently playing a role in the global financial system. Facebook has made countless mistakes and has called every episode a learning experience.
Given its track record of missteps from Cambridge Analytica to facilitating the spread of hate speech that fuelled genocide in Myanmar, the US lawmakers are certain that Facebook is not ripe for launching a fiat currency whose management lies in the same hands that have been inept over the years.
Facebook has promised that Libra’s launch will be on hold until all relevant regulators give a nod.