On June 18, Facebook announced that in 2020 it is going to launch a cryptocurrency called Libra. This announcement surprised regulators and shocked everyone that was against cryptocurrency adoption. Since then, all these politicians and financiers have been heavily criticizing the company.
It is thought that the 3 billion users of Facebook have the ability to overturn the financial system.
In his speech, Sherrod Brown, member of the US Senate, mentioned that the release and approval of the new Libra isn’t worth to be trusted and it’d be illogical to allow the company to make attempts to enter the financial sector.
Before Facebook announced their idea of digital money, it had already been getting negative criticism.
David Marcus, the company’s head, controls the activity and he has presented issues of how Libra can effect the worldwide financial system as lawmakers have many concerns about it. He believes that it’s a matter of time for crypto to be legally accepted but later Marcus made an attempt to relieve those by promising that Libra won’t be offered until law affairs are handled.
Lawmakers were doubtful about the security of customer’s cash and info, like being certain that their transactions will not be revealed by Facebook.
Marcus realizes that this system takes a considerable time to get public trust.
Many critics are angry that this project could move forward such an innovative program with very high potential, without open access for policymakers in the case that it has already appeared in the center of their attention.
A small part of Facebook’s employees works on Libra, for example, Kevin Weil works for the Libra’s leadership. One of the former team members informed about the under cover working method of the company and that only the involved staff were fully aware of it. Others didn’t even know that they were working under Libra’s name.