Bitcoin, Crypto currency, Blockchain

U.S. lawmakers want to stop the development at Facebook’s LibraCoin

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U.S. lawmakers want to stop the development at Facebook’s Libra

Home News U.S. lawmakers want development in Facebook’s Libra stop

Of
Marcel Knobloch –
03.07.2019

For a long time it was more or less Skepulation, now there is certainty: Facebook brings in a very timely manner, a separate digital currency on the market, which is immediately billions of people. Thus, the financial system could be designed in its current Form. Industry experts see this as a great danger, not only for the crypto market.

Members of the U.S. Congress have joined together, and the CEO of Facebook, Mark Zuckerberg, an open letter written. You call on him, as well as all executives of the group, the work of Libra, the very controversial crypto-currency of the social network, to cease immediately. This Moratorium would give the Government time to understand how Libra in practice will work. Since the announcement in June, there are of governments and authorities around the world great concern as to whether the protected private sphere of the users is sufficient, and the monetary policy is not adversely affected.

The open letter was signed by the Chairman of the Task Force for financial technology, and on the facts to two in the June hearings. Libra, therefore, is a disruptive technology that will revolutionize the financial system all over the world (freely translated):

We call on Facebook, and his Partner in writing, immediately a Moratorium on any further movement in relation to Libra, the proposed crypto-currency and the Calibra – the proposed digital wallet to agree with. It looks like could be suitable these products are for a completely new global financial system, which was established by Switzerland and the US monetary policy and the Dollar to compete. This raises serious concerns in relation to privacy, trade, national security and monetary policy, not only for the 2 billion users of Facebook, but also for investors, consumers and the world economy as a whole.

18. June 2019 announced on Facebook his plans for the development of a new crypto currency named Libra and a digital Wallets for the storage of this crypto-currency called Calibra. In order to assist it in this endeavor, has Facebook added 27 other businesses and organizations in the Libra Association, with headquarters in Switzerland. These companies span the financial services and retail industry, and include payment systems, like Mastercard, Paypal and Visa, as well as technology giants such as Uber, Lyft and Spotify. Up to the scheduled start date of the beginning of 2020 Facebook hopes to have over 100 companies for the Libra Association.

While Facebook has published a “white paper” to these projects, revealing the low level of information about intent, roles, potential use and safety of Libra and Calibra, the massive extent of the risks and the lack of clear legal provisions for the protection of. If products and services such as these are not regulated properly and is not sufficiently monitored, they can pose systemic risks that threaten the American and global financial stability. These vulnerabilities could be exploited by bad actors and hidden, as was in the case of other currencies, exchanges and wallets in the past. In fact, the regulators have commented on all over the world have similar concerns, highlighting the need for sound supervision.

The letter brings old stuff to the table, with Facebook in the past negative in the spotlight of the reporting. Including the deception of consumers and the failure to protect private data, such as the entanglements in the case of Cambridge Analytica and the expected USD 5 billion in fines to the Federal Trade Commision (FTC) show. In an Interview last week with the best-selling author Ben Mezrich on CNBC Mezrich maintains that he had only been waiting until the government presses the “stop button”. Governments have (freely translated):

Governments have a monopoly on the Fiat currency. It is one of the last things with which they have a monopoly and can control.

The idea that you let these other crypto-currencies flourish, where people can send controls the money completely unloaded, completely untraceable, completely unprocessed, it seems to me at some point a fork in the road, or a conversation are on the agenda.

The CEO of BitMEX, Arthur Hayes, even in view that commercial and Central banks could be destroyed (freely translated):

I think it is the commercial and Central banks destroy.

Libra is not only a new possible means of payment, but could make the global financial system on the head. Remarkable time is definitely of the tight schedule, the Facebook has presented. Already at the beginning of next year the crypto-currency will be launched. It remains to be seen whether other governments of the world to rise up against it.

Featured Image: YP_Studio | Shutterstock

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