Yesterday the U.S. House of Representatives Committee on Financial Services published a
letter addressed to Facebook’s executives requesting a suspension of activities on
Libra, the recently announced cryptocurrency. The Committee cited the lack of clear intentions and regulations for the work of the Libra Association, the Swiss organization that will oversee the coin. It also expressed reservations about Facebook’s wallet Calibra, along with privacy and security concerns.
The damning letter was penned by the chair of the Committee on Financial Services as well as the chairs of four financial subcommittees. They are chairwoman Maxine Waters, Carolyn Maloney, Wm. Lacy Clay, Al Green and Stephen Lynch.
Indeed, their letter outlines how they think Libra could disrupt the current financial system and negatively affect investors and consumers. A concern is that Switzerland based Libra Association is backed by 27 financially powerful companies, aiming for more by 2020, without any clear rules on impartiality.
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