US Libra Hearings Day 1: Lawmakers Finding It Hard to Trust Facebook

The United States’ Senate Banking Committee raised a wave of skepticism over Facebook’s crypto project Libra during the first day of testimony on July 16.

The new hearing, called “Examining Facebook's Proposed Cryptocurrency and Its Impact on Consumers, Investors, and the American Financial System” is scheduled for 10:00 AM ET, July 17.

As day two is coming in the next few hours, Cointelegraph posts a short recap of yesterday's hearings.

The first day saw Senate Banking Committee attacked David Marcus, head of Facebook’s crypto wallet Calibra, raising major concerns over Libra, including issues of trust, privacy, security and regulation.

The problem of trust has apparently prevailed during the hearing, as Senator Sherrod Brown considered Facebook “dangerous” in the very opening remarks. The senator further expressed his scepticism, expressing doubts that people will trust Facebook with “their hard-earned money.”

Elizabeth Warren, Senator and Democratic Presidential Candidate, outlined a lack of evidence that Facebook does not plan to link the platform’s user data to their money transactions and keep those records. She said:

“I’m not reassured by your statement that you can’t see any reason right now why there wouldn’t be any data sharing between these platforms.”

Senator Martha McSally escalated Warren’s concerns, pointing out that Facebook’s “track record of failing and violating and deceiving in the past” is a sufficient cause for the committee to not trust the platform at all.

Additionally, Senate Banking Committee Chairman Mike Crapo raised a question why the Libra Corporation had chosen to register in Switzerland. In turn, Marcus assured that committee that the association would also register with the U.S. regulators. Specifically, Marcus emphasizedFacebook’s intention to be compliant with the U.S. Financial Crimes Enforcement Network (FinCEN) in distributing its Libra stablecoin.

In the hearing, Marcus highlighted the role of Libra in the global leadership of the U.S. in an apparent attempt to mitigate the escalated concerns over the project. He warned that if the U.S. fails to act on the issue, the world will eventually see another crypto initiative that would be controlled by someone else, whose values are radically different.

Yesterday, U.S. house minority leader Kevin McCarthy expressed criticism against Libra, while praising major cryptocurrency Bitcoin (BTC), which has slipped to as low as $9,100 earlier today, seeing a loss of around 30% over the past 7 days at press time.

  • 30
Block
Add Reply
Feedback |

Nice sharing       

Add Reply
expand

Support 

Add Reply
expand

thanks

Add Reply
expand

support

Add Reply
expand

Good morning.

Add Reply
expand

support

Add Reply
expand

nice

Add Reply
expand

keep on

Add Reply
expand

great

Add Reply
expand

good day

Add Reply
expand

Support  Landlord           

Add Reply
expand

Thanks  your sharing

Add Reply
expand

Come and support

Add Reply
expand

Great sharing. 

Add Reply
expand

Come and support  

Add Reply
expand

Come and mining       

Add Reply
expand

Mining support                     

Add Reply
expand

Thank you  for sharing. 

Add Reply
expand

support~   

Add Reply
expand

thanks for sharing.   

Add Reply
expand

Support and  mining             

Add Reply
expand

Nice sharing          

Add Reply
expand

Support

Add Reply
expand

Mining

Add Reply
expand

Good evening        

Add Reply
expand

Support you            

Add Reply
expand

Great sharing.

Add Reply
expand

support

Add Reply
expand

mining 

Add Reply
expand
You should login to reply
You will reward to {{ username }}

Available Balance: {{balance}}

≈ $ {{usdtAmount.toFixed(2)}} (The reward commission rate is 10.0%)

New Favorite Bag

Add To Favorite You can create multiple favorites and classify the topics. Please select the favorites you want to add.
{{ favoriteBag.title }} {{ favoriteBag.favorites_count }}Topics

{{ text }} OK
fa-bars fa-arrow-up