Libra is a cryptocurrency that Facebook is trying to launch. Unfortunately, American lawmakers are concerned that the cryptocurrency may try to challenge the American dollar therefore asked Facebook to stand down. These lawmakers are from the House Financial Services Committee. More than 30 organizations sent a similar request to Facebook on Tuesday.US and foreign regulatory systems are not prepared to address questions about “national sovereignty, corporate power, consumer protection” and other issues raised by the project. The company announced in June plans to develop Libra, which it hopes will become a universally accepted, stable digital currency that can increase access to financial services around the world and make it easier and cheaper to send money online. Facebook and others will be able to build applications and plug-ins to existing platforms for users to obtain and manage Libra.
But Facebook’s size and influence has given officials pause. Facebook has 2.4 billion users worldwide. That’s a massive audience that could soon adopt a type of currency that remains largely unregulated. Lawmakers also worry about Facebook’s troubled reputation on issues like user privacy and data security.
Though Facebook published a white paper detailing its plans for Libra, lawmakers said it provided “scant information” about the “intent, roles, potential use and security” of the currency. Libra is expected to be very fast, as opposed to other cryptocurencies. Facebook said that Libra will be able to handle 1000 transactions per second. However, the question that emains is how much power is Facebook going to have, considering the scrutiny it had over privacy. Facebook says that the personal data of an individual will be kept separately from the financial data if Libra will be launched.