The US House Financial Service Committee will continue review of Facebook’s Digital Coin Libra and Calibra

US House Financial Service Committee review of Facebook’s Digital Coin Libra and Calibra

The US House Financial Services Committee’s new chairwomen mentioned that the panel would regularly review much speculated digital coin of Facebook, Libra and also its equivalent crypto wallet Calibra.

The US representative, Maxine Waters (D-CA) mentioned in a statement on Friday that offered a time table for 2019. The top priority of the committee for the year is to proceed with the review of Facebook’s Libra coin and also verify the digital wallet software designed by Calibra- a new subsidiary of Facebook Company.

The representative Waters had earlier too demanded a higher regulatory review of the Facebook firm entering into the crypto industry.

In the statement, Waters also mentioned that the panel intends to get more information and views from the government authorities and regulators. Waters further reveals the authority names as follows, US Treasury Secretary Mnuchin, Director of Federal Housing Finance Agency, Calabira, Director of Consumer Financial Protection Bureau, Kraninger and Vice Chairman of Federal Reserve, Quarles.

While, on 18th June, Facebook officially announced the launch of Facebook’s digital coin Libra, expected by 2020.  Just two days after, Rep. Waters requested to postpone the launch and congressional verification of the crypto project.

Libra is backed by 28 organizations consisting of nonprofit institutions and regulatory committees named as ‘Libra Association’.

One month later in July, Waters along with other congressional members enhanced the investigation process that included official questioning of Facebook’s digital project, head, David Marcus.

Walters asked,

Will you stop dancing around this question and commit here in this committee…. to a moratorium until Congress enacts an appropriate legal framework to ensure that Libra and Calibra do what you claim it will do?

Rep. Walters voiced her concerns relating to previous Facebook’s congressional hearings in July 2019. She mentioned that the Menlo Park-based social media firm has a

demonstrated pattern of failing to keep consumer data private on a scale similar to Equifax and allowed malicious Russian state actors to purchase and target ads to — purportedly — influence the 2016 U.S. presidential elections.

On the other hand, US Treasure Secretary, Steve Mnuchin stated with regards to Facebook’s Libra launch that the crypto project raises high concerns with regards to monetary policy and international finance. He also said the key concerns are related to terrorist financing, human and drug trafficking and money laundering activities. He said the Facebook’s Libra coin might pose a threat to national security.

Mnuchin has also outspoken against Bitcoin and crypto views. Back in July, this year US Secretary alleged the world’s top cryptocurrency Bitcoin is highly used for money laundering activities than fiat currency. He further said digital currencies have been greatly dominated by illegal activities.

However, Head of Facebook’s digital project, David Marcus revealed that the Libra project of Facebook will fulfill all the regulatory requirements for the US, which the company plans to work in.

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