U.S. Senate to Grill Facebook for its Cryptocurrency “Libra” plans

After revealing its plans about Libra digital coin on June 18, Facebook has been facing a lot of criticism from lawmakers, politicians, and financial regulator not only from the United States but from across the world. The lawmakers of the United States are set to grill the social media giant on its plans for Libra cryptocurrency on Wednesday.

Facebook, on the other hand, is fighting to convince lawmakers and financial regulators to pave the way for launching Libra digital coin in 2020.

Right after the announcement of Libra cryptocurrency, Facebook faced a massive criticism on this plan from financial watchdogs and the lawmakers. These lawmakers have a clear understanding that this launch of Libra digital currency by Facebook, with its around 2.4 billion users, can disturb the financial system. Critics of this plan say that Facebook has announced its plan without taking the policymakers into confidence.

Members from the Senate Banking Committee will question Facebook’s top executive David Marcus on the plan about Libra digital coin and its effects on the monetary policy at a global stage. The committee will also question Marcus over the privacy issues like how they have planned to handle customer’s data.

The former Paypal president Marcus will answer the critical questions asked by the Senate Banking Committee on Wednesday. He said, “We know we need to take the time to get this right.”

Democratic lawmakers, who already believe that Facebook is not handling the consumer data in the right way, will question Marcus on various privacy issues about Libra cryptocurrency.

Steven Mnuchin, the Treasury Secretary, said that the Facebook officials have to convince the authorities before putting any such plan into action. He said, “They’re going to have to convince us of very high standards before they have access to the U.S. financial system.”
According to Kevin Weil, who is a part of Libra initiative, a fraction of Facebook’s colossal workforce is working on Libra cryptocurrency project.

Now Facebook needs to satisfy the lawmakers in every possible way to get approval for the launch of Libra, which is expected to impact a considerable number of people across the globe.

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