House Democrats call for Facebook to halt cryptocurrency project

[jonathan6655321]

I think it's a serious subject. Would like to know what's your opinion about it:


TL;DR

A group of Democrats on the House Financial Services Committee is calling on Facebook to halt its plan to develop a cryptocurrency-based payments platform.

The lawmakers, whose panel will hold a hearing later this month on Facebook’s Project Libra, wrote a letter to company executives Tuesday expressing concerns with the cryptocurrency’s security and oversight while stressing the need to protect users' privacy and thwart hackers.


"If products and services like these are left improperly regulated and without sufficient oversight, they could pose systemic risks that endanger U.S. and global financial stability. These vulnerabilities could be exploited and obscured by bad actors, as other cryptocurrencies, exchanges, and wallets have been in the past,” the lawmakers wrote.

"“Investors and consumers transacting in Libra may be exposed to serious privacy and national security concerns, cyber security risks, and trading risks. Those using Facebook's digital wallet — storing potentially trillions of dollars without depository insurance — also may become unique targets for hackers,” they continued"


Source:
https://thehill.com/homenews/house/451459-house-democrats-call-for-facebook-to-halt-cryptocurrency-project

[Slow death]

This was already expected. facebook already had scandal of leaked data and then appear with the idea of creating a currency, governments will start to think hard if it will be good or not that facebook create a currency.

Advocacy Groups Call on Congress to Stop Libra Development Until July Hearings

Survey: Facebook’s Stablecoin Libra Unlikely to Become Mainstream

Official: Russia Will Not Introduce Separate Regulation for Facebook’s Libra

French Central Bank: Facebook’s Libra May Need Banking License

[avikz]

Ha Ha Ha!! That's what I was talking about since the time the concept of Libra surfaced! Facebook set a timeline for early 2020 to launch the coin, but I will be surprised if they can launch it in 2020 itself! They are going to face serious level of regulatory concern and there's no way they will make it anonymous like the way they are promoting it! Even if they launch it with all necessary licenses, the transactions will be even more visible to the enforcement agencies than fiat! Good luck Mark!

[Herbert2020]

i kind of expected something like this to happen when they basically started printing money, something that the government is only allowed to do! but when some company starts entering this field and do things that is not in their jurisdiction problems like this will surface.
it will probably be created at some point though. they will spend a ton of money on lawyers and bend to the regulations they impose on them and release their crap coin.

[unusualfacts30]

this was not something that is far from what most people had suggested but as I see in the article they're coming back strong. I'm not sure this will do anything to stop them progressing this project. It says the data is separate but will it stay separate in the future? that is the important question.

[DooMAD]

Just goes to show the weakness of centralised systems.  Good luck to the House if they ever ask Bitcoin to hold fire on what it's doing.   

Any number of private companies will try to launch their little projects, but one by one they'll all get the kibosh from some government entity or another.

[audaciousbeing]

I think it's a serious subject. Would like to know what's your opinion about it:


TL;DR

A group of Democrats on the House Financial Services Committee is calling on Facebook to halt its plan to develop a cryptocurrency-based payments platform.

The lawmakers, whose panel will hold a hearing later this month on Facebook’s Project Libra, wrote a letter to company executives Tuesday expressing concerns with the cryptocurrency’s security and oversight while stressing the need to protect users' privacy and thwart hackers.


"If products and services like these are left improperly regulated and without sufficient oversight, they could pose systemic risks that endanger U.S. and global financial stability. These vulnerabilities could be exploited and obscured by bad actors, as other cryptocurrencies, exchanges, and wallets have been in the past,” the lawmakers wrote.

"“Investors and consumers transacting in Libra may be exposed to serious privacy and national security concerns, cyber security risks, and trading risks. Those using Facebook's digital wallet — storing potentially trillions of dollars without depository insurance — also may become unique targets for hackers,” they continued"


Source:
https://thehill.com/homenews/house/451459-house-democrats-call-for-facebook-to-halt-cryptocurrency-project

I will be surprised if there is no opposition to the bold move Facebook is pushing forward because from the lawmakers point of view, it sure means granting more power to private organisations at the expense of public institution because the moment the control of money or crypto goes to the organisation, government power becomes gradually dwindling down which any government would want. Coming from the Democrats should not be a subject of discussion because irrespective of parties, all elected representatives wants the same thing which is the continual rest of power with the government.

[YuginKadoya]

I really think it is great news for us because right now a massive stable coin project was a halt to enter the vicinity of the crypto community, We can see the correlation between Facebook and its consumers it will sure be a big hit for the market of stable coins, And I guess the house representative had seen instead of security but a massive None protection to privacy, And they have seen a threat instead of an innovation to technology.

[eternalgloom]

Yeah, I'm not surprised given Facebook's history with not being able to safeguard personal data.
Cambridge Analytics is still fresh in everyone's memory and now they're starting their own stablecoin.

All I see is a massive data mining operation where they're going to have access to people's finances on the platform.

[Cryptof11k]

I don't think this a good idea halting the project honestly

[kryptqnick]

I feel like one way or another we need regulations if we want cryptocurrencies to be widely recognized. But I am generally against authorities intervening and not allowing solid crypto projects to be implemented. However, in this particular case, I think it's a good thing. Libra is not some magic crypto that will boost the market's popularity. It's a centralized project, made to resemble cryptocurrencies and allowing to benefit from blockchain while losing financial freedom and risking one's privacy. It's a rival of Bitcoin, not a friend. And Democrats care about freedom and rights. They even proposed to make a An Internet Bill of Rights to protect people from what happened in that Facebook scandal and other similar situation. I think they are pushing the bureaucratic system on Libra, because of these privacy issues, and it's actually neutral or even good for the crypto market as such.

[Makka]

They really have a good point especially on hacking security and the need of an insurance. But I am not sure how these lawmakers which composed mostly of old people which are not this knowledgeable when it comes to technology. There is also the possibility that they wanted to get in and spy on people. If this Libra will indeed transacts in trillions in the future then it is also bad for the US dollar market.