Facebook faces pressure to suspend Libra cryptocurrency project

Libra

Within 24 hours of the announcement of its Libra cryptocurrency project, there are pressures and concerns targeting Facebook Inc. to pause on the project.

The Libra digital currency which is a collective network of elite tech giants under the umbrella of the Libra Association is expected to launch in the second half of 2020.

In simple terms, Facebook said- The Libra network with its Calibra wallet will allow users to buy Libra and store it online in a digital wallet called Calibra. It would then be transferable between users and could eventually be used to pay bills or buy things.

As part of the deluge of concerns raised on the Libra project, Democratic congresswoman, Maxine Walters has called on Facebook to delay the project.

“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a crypto-currency until Congress and regulators have the opportunity to examine these issues and take action,” she said in a report by BBC.

Her concerns were hinged on Facebook’s chequered records of user data leaks and privacy issues. She called on Facebook’s executives to testify before the Congress.

In a swift response, Facebook’s spokesman said: “We look forward to responding to policymakers’ questions as this process moves forward.”

However, the UK is not abrasive in its response to the Libra project.

Earlier today, Bank of England’s governor, Mark Carney said that he remains ‘open-minded’ to the project because ‘worldwide payments systems are largely unequal at the moment’.

He added that the UK will scrutinize Facebook’s Libra “very closely”. However, Facebook should be getting ready to spend more time with global authorities and financial regulators.

This is because of Carney’s plan to involve G7 countries, the Bank of International Settlements, International Monetary Fund as well as the Financial Stability Board to engagement with the social media giant on the project.