Facebook’s new Libra stablecoin can’t seem to catch a break as ever since its announcement, people have been slating it calling it a scam or warning people to stay away. The poor asset hasn’t even been launched yet!
Earlier this month, lawmakers in the United States requested that Facebook hit pause on Libra but now Facebook has responded…
Last year, the social network was facing charges for purposefully sharing user’s data with third parties. Since then, the government has kept a close eye on Facebook and Libra has raised more than a few questions.
Now, the chairwoman for the House of Financial Services Committee, Maxine Waters, has raised her worries in regards to how the upcoming stablecoin could be misused if left “improperly regulated and without sufficient oversight.” According to her, the threat could be big enough to have a big impact on the US and international financial stability.
Response From Libra
In writing back to the lawmakers, David Marcus, CEO of Libra said that he was open to testifying before them in order to clear everything up about any doubts they would have against the project. Marcus made it clear that he wants to work together with regulators, central banks and lawmakers.
“The criticism and scrutiny isn’t all that new to Facebook’s cryptocurrency project as it had failed to strike chords with most of the eminent stakeholders of the cryptocurrency industry from the very start. However, with the U.S. lawmakers turning against the tech giant, there seemed to be only one way out for Facebook — to bend a little and try proving themselves.”
Facebook has been trying to improve its image for years now. I suppose when you start off your multinational company with a lawsuit from the Winklevoss Twins, things were never going to go well publicity-wise.
Facebook has got one thing in its crosshairs right now and that is to become one of the biggest financial institutions in the world, all with the help of Libra.