Facebook to put Libra cryptocurrency on hold

The US democratic heads requesting the leading social platform Facebook to halt development on its Libra cryptocurrency until lawmakers have had more time to investigate the ramifications of the company’s actions.

Facebook to put Libra cryptocurrency on hold

The Democratic heads of the house committee on financial services and its subcommittees wrote a letter to the Facebook Mark Zuckerberg, Sheryl Sandberg, and Libra’s chief executive, David Marcus, the legislators ask the company to “immediately cease implementation plans”.

  • “Because Facebook is already in the hands of over a quarter of the world’s population, it is imperative that Facebook and its partners immediately cease implementation plans until regulators have an opportunity to examine these issues and take action.”

Although Facebook has commenced the development of Libra, and will be creating the first consumer “wallet” for the currency through its Calibra subsidiary, the actual development of the service will be handed over to the Libra Association, an arms-length organisation headquartered in Geneva, Switzerland.

These risks are even more glaring in light of Facebook’s troubled past, where it did not always keep its users’ information safe. 

The duration of the moratorium on Libra development need not be that long: the congressional committee is convening a full hearing examining Libra on 17 July.