Libra News: US Senators Signal Potential Liabilities About Facebook’s Project
Facebook’s Libra is a really controversial project. If in the beginning, when the news of what Facebook is up to was made public, the idea was surrounded with enthusiasm, these days, the project is not seen with a lot of trust by some voices in the crypto space.
Libra was recently in the spotlight when it was reported that PayPal has reportedly withdrawn its support for Facebook’s project Libra.
The payment giant reportedly joined the nonprofit association back in June 2019 and it was one of the 28 members who were tasked with overseeing the development of the controversial project and its eventual launch next year.
Members of US Senate express concerns about Libra
It seems that Facebook’s business partners might find themselves in hot water according to some letters that have been issued by the members of the US Senate to some members of Facebook’s Libra Association.
You may recall that the latter is a non-profit organization that oversees the tech giant’s stablecoin project Libra.
— Calibra (@calibra) October 3, 2019
The letters have been issued on Tuesday by two members of the US Senate Banking Committee.
The Daily Hodl reported that these are senator Sherrod Brown of Ohio and Senator Brian Schatz of Hawaii, warn the chief executive officers of Visa, Mastercard, and Stripe about their ties with Facebook’s controversial project.
They warn about the membership in the Libra Association.
They wrote the following:
“We are concerned because key questions remain unanswered about the risks the project poses to consumers, regulated financial institutions, and the global financial system. We urge you to carefully consider how your companies will manage these risks before proceeding.”
Facebook made some huge efforts to highlight Libra’s goals of launching tech for the unbanked and the undeserved and for allowing everyday people to send crypto all over the globe as easily as sending information such as emails.
The senators call Libra a tool for criminals.
We recommend that you read the complete letter.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.