Stop Developing Libra and Calibra

“Stop developing Libra and Calibra.” That is the purpose of an open letter from representatives of the US House of Representatives to Facebook. The letter is addressed to founder Mark Zuckerberg and head blockchain David Marcus, among others.

One of the signatories of the letter is Maxine Waters. She is chairman of the “House Committee on Financial Services”. This committee oversees the financial services sector in America. In a personal capacity, Waters has once rejected Facebook’s plan, but it is new that she is now doing so via a formal letter.

“Libra is going to compete against monetary policy and the dollar”

The House of Representatives is deeply concerned about Facebook’s plans. This is apparent from this passage of the letter:

“It seems that these products (ed .: Libra and Calibra) can lend themselves to a whole new global financial system. A system based on Switzerland that is intended to compete with US monetary policy and the dollar. “

Those are not mild words. But it goes even further: “This leads to serious problems in the areas of privacy, trade, national security and monetary policy. Not only for the two billion users of Facebook, but also for investors, consumers and the broader global economy. “

Breaking: Members of the Congressional House Committee on Financial Services, Chaired by Rep Maxine Waters have asked Zuckerberg & Facebook to:

“Immediately agree to a moratorium on any movement forward on Libra”

The letter references exchange hacks and Cambridge Analytica pic.twitter.com/3INx0yz5Pg

– Bruce Fenton (@brucefenton) July 2, 2019

“Dangerous, there is still too little regulation”

The real problem lies in regulation, or rather the lack thereof. This is apparent from this part of the letter:

“Facebook has written a” white paper “about the various projects. But this plan only provides scarce information about the intention, potential use and safety of Libra and Calibra. This information does explain the enormous risks and the lack of clear legal protection. “

The signatories of the letter are also afraid of abuse:

“Products and services that are not properly regulated can pose enormous risks to US and global financial stability. This can lead to vulnerabilities being exploited by the wrong people. This was also the case with other cryptocurrencys, exchanges and wallets. “

What will Facebook do?

Since the announcement of Facebook around Libra on Tuesday, June 18, there have been many dissent from various politicians worldwide. Especially in America Facebook with its cryptocurrency keeps politics in its grip.

The question is: what is Facebook going to do now? Will the project go ahead, or will Libra be stopped before the launch? We keep an eye on the developments for you.

Do you want to read the letter from the House of Representatives yourself? This is possible here (PDF download link).