Maxine Waters asks Facebook to stop Libra’s Development

Democratic Rep. Maxine Waters, chairperson of the House Financial Services Committee, on Tuesday, asked that Facebook pause its process of Libra, an upcoming cryptocurrency that the corporate plans to launch in 2020.

“Given the corporate’s troubled past, I’m requesting that Facebook comply with a halt on any process ahead on creating a cryptocurrency until Congress and authorities have the opportunity to look at these problems and take action,” Waters stated in a press release on Tuesday.

Facebook and a consortium of companions on Tuesday revealed Libra, its long-awaited blockchain venture that the social media giant has been working on over the past year. Libra is an open-supply digital currency that folks will be able to use to send money to peers or retailers over the web. Facebook is further launching a digital wallet – Calibra – for customers to keep and trade the currency.

Rep. Patrick McHenry, the rating Republican on the committee, had requested Waters to call the hearing earlier in the day. “Whereas there is great promise for this new know-how in promoting financial inclusion and quicker payments, significantly in the growing world, we know there are lots of open questions as to the vision and scale of the venture and how it will conform to our global financial regulatory guidelines,” he wrote. “We need to transcend the rumors and speculations and provide a forum to evaluate this venture and its unprecedented potential influence on the economy

Senator Sherrod Brown, a Democrat, further expressed suspicion, tweeting “We can not authorize Facebook to run a dangerous new cryptocurrency out of a Swiss bank account without oversight.”