Lawmakers Demand Halt to Facebook's New Libra Cryptocurrency
Congress reacts angrily to Facebook's unveiled Libra cryptocurrency, demanding a moratorium and hearings. The digital currency faces immediate regulatory pushback over data privacy and oversight concerns.
Facebook unveils its plan to launch a new cryptocurrency called Libra in 2020, managed by a Switzerland-based foundation backed by 27 founding members. These members include major companies like Uber, Visa, Mastercard, and PayPal, which each invest at least $10 million to run validator nodes and receive voting rights in the foundation's council. The token draws its value from these foundation reserves and aims to provide digital payment access to unbanked populations globally.
The announcement triggers immediate fury in Washington as lawmakers from both parties demand a halt to the project. House Financial Services Committee Chairwoman Maxine Waters leads the pushback, urging Facebook to stop development until Congress and regulators properly examine the initiative. Lawmakers express deep concern over Facebook's history of data misuse and question whether the new coin will have appropriate financial oversight.
This swift political reaction highlights the growing tension between Silicon Valley innovation and government regulation. Bitcoin supporters watch the situation closely, as the scrutiny surrounding Facebook's centralized digital currency contrasts sharply with the decentralized nature of traditional cryptocurrencies. The clash sets the stage for a major legislative battle over the future of private digital money in the United States.