The House of Representatives Finance Committee is asking Facebook managers to give more time to study the consequences of the emergence of the potentially most massive crypto project in the world. Lawmakers have at least three serious reasons for doubt.
The moratorium requirement identifies three areas of danger. They need to be investigated before continuing to develop and approve the implementation, congressmen indicate.
According to Business Insider, lawmakers are asking for additional time to discuss the possibilities of hacking Libra, its impact on national security, as well as the miscalculation of risks for the global monetary system.
Congressmen emphasize that Zuckerberg’s new venture “raises serious concerns about privacy, trade, national security and monetary policy, not only for 2 billion Facebook users, but also for investors, consumers and the entire global economy.”
In theory, Libra is tied to fiat currencies – a full-fledged alternative to the traditional financial system with its issuing center, government, very far from a crypto-anarchy and covering 2.7 billion people. That’s the number of Facebook, WhatsApp and Instagram users. But in practice, its use even within the Facebook ecosystem can be seriously limited – everything will depend on what you can agree on with the regulators.
For now, Facebook plans to closely integrate Libra into its services and start making payments in early 2020.
US lawmakers can erect serious barriers to Libra, and the current letter is only the beginning of a difficult dialogue. Facebook founder Mark Zuckerberg has already been summoned to Congress to discuss cryptocurrency.