While Facebook is preparing for the launch of its cryptocurrency project, Libra, at full steam, there is a wench thrown into the works.
A United States lawmaker has 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.
The lawmaker, Maxine Waters, who chairs the House Financial Services Committee, should halt the project, so that Congress and regulators can review the issue. Waters, in a statement, to news portal Reuters 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.”
Facebook’s announcement on its cryptocurrency project led to a severe backlash from US lawmakers, who were already apprehensive about the social media giant’s lax security, concerning users’ data.
This roadblock is concerning, because Facebook has already been dotting the i’s and crossing the t’s since it announced the project. Recently, the company had met the United States regulator the Commodity Futures Trading Commission (CFTC).
However, at the time, the chairman, J. Christopher Giancarlo was quoted as saying, “We’re very interested in understanding it better.” However he also said so far there have been no requests put forth for regulatory clearance. Giancarlo further added, “We can only act on an application, we don’t have anything in front of us.”
As previously reported by Crypto-News India, Facebook has also been in conversation with cryptocurrency exchanges such as Gemini and Coinbase. For the uninitiated, we had reported that Facebook has discussed its GlobalCoin project also with both these leading cryptocurrency exchanges in its country.
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