A group of Democrats on the House Financial Services Committee wrote a letter asking Facebook to stop its Libra cryptocurrency plans (via MarketWatch).
The letter [PDF] is to Facebook CEO Mark Zuckerberg, CFO Sheryl Sandberg and CEO of Facebook’s Calibra digital wallet David Marcus. It was signed by committee chair Maxine Waters, D-Calif., along and Reps. Carolyn Maloney, D-N.Y., Lacy Clay, D-Mo., Al Green, D-Texas, and Stephen Lynch, D-Mass.
The committee is worried that “these products may lend themselves to an entirely new global financial system that is based out of Switzerland and intended to rival U.S. monetary policy and the dollar.” They call on Facebook to stop Libra until Congress and regulators have time to have public hearings on its risks and benefits and explore legislative solutions.
Investors and consumers transacting in Libra may be exposed to serious privacy and national security concerns, cyber security risks, and trading risks. Those using Facebook’s digital wallet—storing potentially trillions of dollars without depository insurance—also may become unique targets for hackers. For example, during the first three quarters of 2018, hackers stole nearly $1 billion from cryptocurrency exchanges. The system could also provide an under-regulated platform for illicit activity and money laundering.