US Congress Requests Moratorium On Facebook’s Libra Cryptocurrency

The United States House of Representatives on Financial Services is in the coming altcoin news for requesting Facebook along with its partners to stop the development of the Libra stablecoin. In a letter sent on July 2 which was addressed to Facebook CEOs Mark Zuckerberg and David Marcus as well as the COO Sheryl Sandberg, the US Congress requested that the social media giant and its partners should immediately agree to a moratorium on the development of Libra and its Calibra wallet.

The committee, as the latest cryptocurrency news show, claims that the project may lead “to an entirely new global financial system that is based out of Switzerland and intended to rival the US monetary policy and the dollar.” The US Congress committee notes that it believes such an endeavor could have serious implications:

”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.”

The letter further claims that it foresees cybersecurity vulnerabilities which could lead to trillions of dollars of uninsured deposits being lost. The altcoin news also show that consumers could be exposed to severe privacy and national security concerns.

According to the US Congress, Facebook’s troubled past with user data further exacerbates the concerns. As the letter shared on many best cryptocurrency news sites claims:

“If products and services like these are left improperly regulated and without sufficient oversight, they could pose systemic risks that endanger U.S. and global financial stability.”

The US Congress committee also claims that “it is imperative that Facebook and its partners immediately cease implementation plans” until the regulators explore the issues above. During this moratorium, the regulators intend to hold public hearings on the risks and benefits of the system as well as explore legislative solutions.

“Failure to cease implementation before we can do so, risks a new Swiss-based financial system that is too big to fail,” the letter briefly concludes.

As we reported earlier this week, over 30 advocacy groups have appeared as signatories on a request that the US Congress and regulators should implement an official moratorium on Libra’s development.