Caving in to the pressure, social media giant Facebook has announced that it will not be going ahead with the launch of its cryptocurrency project, Libra.
On Monday, the company said it would not proceed with the launch of its Libra cryptocurrency until regulatory concerns are addressed. News portal FirstPost reported that David Marcus, who oversees Facebook’s blockchain efforts, had planned to tell the US Congress that Libra is not being built to compete with traditional currencies or interfere with the existing financial policy.
Marcus was planning to say, “The Libra Association, which will manage the (Libra) Reserve, has no intention of competing with any sovereign currencies or entering the monetary policy arena. Monetary policy is properly the province of central banks.”
“Facebook will not offer the Libra digital currency until we have fully addressed regulatory concerns and received appropriate approvals,” he said.
Steven Mnuchin, a senior regulator in the US government stated that he was not comfortable with Libra currently, particularly in guarding against money laundering and other illicit use. He added, “They’re going to have to convince us of very high standards before they have access to the US financial system.”
He is the latest nay sayer to join the voices against the project. In June we had reported that a United States lawmaker had requested the social media giant to put a halt to its ongoing project. The lawmaker also asked the representatives of the company to testify before the Congress, and clarify how Facebook’s GlobalCoin could affect user data and privacy.
At the time, the lawmaker, Maxine Waters, who chairs the House Financial Services Committee, had said, “Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data. 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.”
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