Post-Swiss Trip, Maxine Waters is Still Not Convinced on Facebook’s Libra
Congresswoman Maxine Waters, the Chairwoman of the House Financial Services Committee, went on a bipartisan trip to Switzerland. Here goal: To get a better understanding of Facebook’s proposed Libra stablecoin
Congresswoman Maxine Waters is back from Switzerland. She took exploratory trip to visit Libra’s Swiss headquarters and the Swiss Parliament. Afterward, she cast more doubt on the Libra stablecoin.
Before we get into her objections, let’s start with the background.
Facebook faces privacy concerns; Libra rival to US dollar?
Recall that last July, led by Chairwoman Waters, House lawmakers sent off a letter to Facebook CEO Mark Zuckerberg, COO Sheryl Sandberg, and Calibra CEO David Marcus demanding an immediate moratorium on the implementation of Facebook’s proposed cryptocurrency Libra and digital wallet Calibra.
“It appears that these products may lend themselves to an entirely new global financial system that is based out of Switzerland and intended to rival U.S. monetary policy and the dollar,” the letter said. “This raises serious privacy, trading, national security, and monetary policy concerns for not only Facebook’s over 2 billion users, but also for investors, consumers, and the broader global economy.”
The letter cited cyber-security risks and hacking thefts in general. It said: “These risks are even more glaring in light of Facebook’s troubled past, where it did not always keep its users’ information safe.”
Congresswoman Maxine Waters still opposes Facebook’s project
Waters acknowledged that the discussions in Switzerland with Swiss regulators. She said conversations with legislative authorities “were helpful in understanding the status, complexity, and magnitude of Facebook’s plans.”
Unfortunately, for Facebook and Libra, Waters said the visit had not much changed her stance.
“While I appreciate the time that the Swiss government officials took to meet with us, my concerns remain with allowing a large tech company to create a privately controlled, alternative global currency,” she said. “I look forward to continuing our Congressional delegation, examining these issues, money laundering, and other matters within the Committee’s jurisdiction.”
The Libra Association has said it will not launch the blockchain until it receives regulatory approval.
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