Members of the US Congress have issued an open letter to Mark Zuckerberg, CEO of Facebook, and its executives, requesting that the tech giant cease working on Libra, the social network’s controversial upcoming cryptocurrency. The moratorium would give the government some time to understand how Libra will operate.
Since Libra’s unveiling last month, regulators around the world have been expressing their criticism and concerns about privacy and monetary policy. Today’s request from US lawmakers arrives ahead of two scheduled hearings dedicated to Libra this month. The letter, signed by Chairwoman of the House Financial Services Committee, Maxine Waters, along with representatives from several subcommittees and the Chair of the Task Force on Financial Technology, reveals that lawmakers fully understand that Libra is a disruptive technology that aims to revolutionize the global financial system.
According to the letter,
“We write to request that Facebook and its partners immediately agree to a moratorium on any movement forward on Libra – its proposed cryptocurrency and Calibra – its proposed digital wallet. It appears 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. This raises serious privacy, trading, national security, and monetary policy concerns for not only Facebook’s over 2 billion users, but also for investors, consumers, and the broader global economy.