Facebook's Libra Under Fire: Lawmakers Demand Answers on Cryptocurrency

Facebook’s Libra: A New Cryptocurrency on the Block

Here we go again! The United States House of Representatives Financial Services Committee has called forth another high-profile meeting to address the implications of Facebook’s proposed Libra cryptocurrency. Lawmakers are not rolling out the welcome mat for Facebook’s foray into digital currency, but rather sharpening their pitchforks (figuratively speaking, of course).

Maxine Waters Takes the Lead

Committee chair Rep. Maxine Waters opened up today’s hearing with a fiery indictment of Facebook’s checkered past. Thanks to their stellar track record of keeping consumer data secure—think Equifax levels of ouch—Waters has reason to be skeptical. As she pointed out, Facebook’s history of allowing Russian state actors to exploit their platform during the 2016 elections adds another layer of distrust. Honestly, if I were a lawmaker, I’d want to send Facebook to an ethics boot camp.

The Keep Big Tech Out of Finance Act

One of the hot topics on the agenda is the nascent “Keep Big Tech Out of Finance Act.” This draft bill looks to curb large technology companies—not just Facebook, but others too—from operating their own digital currencies. The draft states:

“A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as medium of exchange, unit of account, store of value, or any other similar function.”

In simpler terms, big tech should stick to their day jobs (posting cat videos, anyone?).

Reactions from Facebook’s Brass

Meanwhile, Facebook’s David Marcus found himself on the hot seat after the Senate’s grilling. He assured lawmakers that Libra would play by the rules and seek proper approval from relevant bodies, including the United States Financial Crimes Enforcement Network. Because, you know, when you’ve run into trouble once, it’s always a good idea to get more people involved in your next adventure!

A Look Ahead

What lies ahead in the saga of Facebook’s Libra? Will lawmakers manage to impose regulations that keep tech giants in check, or will they step into the digital currency world, leaving a wake of chaos behind? As the hearings continue, one thing remains clear: the road to cryptocurrency is extremely bumpy, especially when you mix in tech giants with a reputation for dubious data handling.