Facebook is once again facing new, and apparently stronger roadblock against its cryptocurrency ambition, Libra, as House Democrats sent the company a letter telling them to stop its plans for the digital money.
“If products and services like these are left improperly regulated and without sufficient oversight, they could pose systemic risks that endanger the U.S. and global financial stability,” said a letter from Democrat congresspersons on Thursday.
The letter to Facebook Chief Executive Mark Zuckerberg, CFO Sheryl Sandberg and David Marcus, CEO of Facebook’s Calibra digital wallet, was signed by committee chair Maxine Waters, D-Calif., along with and Reps. Carolyn Maloney, D-N.Y., Lacy Clay, D-Mo., Al Green, D-Texas, and Stephen Lynch, D-Mass.
“The scant information provided about the intent, roles, potential use, and security of the Libra and Calibra exposes the massive scale of the risks and the lack of clear regulatory protections,” the letter read. “These vulnerabilities could be exploited and obscured by bad actors, as other cryptocurrencies, exchanges, and wallets have been in the past.”
Facebook announced last month that in the early quarters of 2020, the California-based tech company would start rolling out its digital currency known as Libra, which they said is different and more secure than existing cryptocurrencies as it is backed by a group of companies supporting the money and it is banked on real currencies and government certificates.
This is not the first legislative roadblock faced by Facebook’s Libra. Last month, European officials were very adamant of Libra, citing that there could potentially be a disruption in the global financial system following the release of Libra and it could rival central banks. Other officials also pointed out the potential of the Libra to be used as a tool to evade global sanctions and to launder money.
Meanwhile, Facebook’s stocks closed Tuesday with a 1.04% rise to $195.