As people would be aware, Facebook’s cryptocurrency project Libra has been facing regulatory hurdles, since the time the project was announced.
Recently, it was revealed that Facebook has hired a lobbying firm in light of increased Congressional and regulatory pushback. A press release said that the social media giant hired consulting shop FS Vector for support on “issues related to blockchain policy,” according to lobbying registration documents filed with Congress.
In June, a United States lawmaker 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 asked Facebook to halt the project, so that Congress and regulators could review the issue. Waters, in a statement, to news portal Reuters 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.”
In July, Donald Trump directed his ire at cryptocurrencies, including Libra. He said, “I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….”
He had added, “….Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National…”
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