4 US Lawmakers Join Call to Freeze Facebook’s Libra Project

U.S. lawmakers are formally calling on Facebook to cease all development of its Libra cryptocurrency in a new letter sent to executives at the social media giant.

Democrats from the U.S. House of Representatives wrote an open letter to Facebook Tuesday, calling on a moratorium to all libra development while the Financial Services Committee and affiliated subcommittees hold hearings to determine how it would operate and what protections would be implemented to protect user privacy.

Representatives Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee; Carolyn Maloney (D-NY), Chair of the Investor Protection, Entrepreneurship and Capital Markets Subcommittee; William Lacy Clay (D-MO), Chairman of the Housing, Community Development and Insurance Subcommittee; Al Green (D-TX), Chairman of the Oversight and Investigations Subcommittee; and Stephen F. Lynch (D-MA), Chairman of the Task Force on Financial Technology all signed onto the letter, which was addressed to Facebook CEO Mark Zuckerberg, COO Sheryl Sandberg and Calibra CEO David Marcus.

Waters has repeatedly called on Facebook to pause development of libra, though this is the first time she has done so as part of a formal letter to the company.

The letter described concerns with Facebook’s track record, a well as the potential for libra to act as a new global currency system.

“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,” the lawmakers wrote, adding:

“While Facebook has published a ‘white paper’ on these projects, the scant information provided about the intent, roles, potential use, and security of the Libra and Calibra exposes the…

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