In a recent warning letter (dated 8 Oct 2019) to all Facebook’s corporate partners, the US Senate emphasised Facebook’s privacy violations, fake news, election interference, discrimination, fraud and its involvement in child sex abuse.
In the letter, signed by two senators, it brings up New York Times’ investigation into the proliferation of child sex abuse due to social media platforms, and emphasises that of 18.4 million cases of child sex abuse 12 million of them were circulated on Facebook Messenger.
In an obvious, underhand warning to the corporate partners, the letter goes on to say,
‘It is chilling to think what could happen if Facebook combines encrypted messaging with embedded anonymous payments via Libra. Your companies should be extremely cautious about moving ahead with a project that will foreseeably fuel the growth in global criminal activity.’
This is obviously a concern, especially with Facebook’s history, and the senate has valid concerns about the growth of criminal activity. However, if Libra is to be an “open ledger” in which I’m sure governments could audit, surely this would help the authorities in their fight against criminals?
In a further threat to Libra’s corporate partners the letter says,
‘If you take on this, you can expect a high level of scrutiny from regulators not only on Libra-related payment activities, but on all payment activities.’
Since the letter was addressed to Libra’s partners, VISA, Mastercard, Stripe and PayPal have all dropped out of the partnership, and it should be expected that more would follow. An obvious threat from the US government is not something any company would encourage.
It appears the US government, backed by many others no doubt, are feeling threatened by Facebook’s idea of a cryptocurrency. It is a centrally owned, fiat-backed cryptocurrency (shitcoin) that is an obvious threat to the central banks’ monetary system.
The fact that the government can come in, threaten a few nodes, and probably close Libra down, highlights the importance of Bitcoin and a proper, decentralised money. The day will come when governments are threatened enough to try and close Bitcoin down, but when that day arrives who will they write their threatening letter to?
Author: Tommy Limpitlaw