The US Financial Services Committee asks Facebook to stop developing Libra

The US Financial Services Committee asks Facebook to stop developing Libra - libra facebook

In the United States the Financial Services Committee of the House of Representatives has decided to request a Mark Zuckerberg and Facebook to stop the Libra development project, the stablecoin that should be issued in the coming months of 2019. 

The letter was addressed directly to CEO Mark Zuckerberg but also to the coordinator of the project David Marcus, and finally to the COO Sheryl Sandberg, the legislators within this have asked the social network to accept a moratorium on both the Calibra wallet and for the development of Libra. 

Why did the American government ask for Libra's suspension? 

The Committee stated that the new cryptocurrency could lead to the emergence of a financial system innovative global company based in Switzerland that would therefore lead to competition with the dollar and also with US monetary policies. The project if it had been successful, the consequences could be really disastrous.

Libra in fact arouses strong concern in the US government linked to trading, privacy, monetary policies, national security. The negative effects could affect not only two billion Facebook users worldwide, but also for consumers, the global economy and finally also for investors 

The legislators they wanted to emphasize that Facebook in the past it has already had the management of users' private data and has increased exponentially the fears that are mentioned above. If services and products like this are not adequately regulated, if they are left free to do bad and bad weather without sufficient supervision, the risk could be both global and US financial instability. 

For this reason, until the various regulatory bodies analyze all the problems, it is necessary that Facebook and also its partners immediately cease their various implementation plans. Recently, Joseph Eugene Stiglitz, winner of the Nobel Prize for Economics in 2001, criticized Facebook's Libra project. According to the economist, currencies work on the basis of trust and only a fool could trust Libra. The last thing we need is a tool that allows you to conduct illegal activities and consequently also recycle your earnings. This criptovaluta could become a means of organized crime.