Libra cryptocurrency raises ‘serious concerns’ and FED wants Facebook to halt working on its new blockchain project

After its announcement, Facebook’s new decentralized financial ecosystem — Libra got all the attention around the world. Many are welcoming the new guest to the blockchain world, while some others are worried about its existence, and of course, the government is those guys.

Facebook partnered with 27 other organizations around the world started the non-profit Libra Association and created the new global currency Libra and like always the lawmakers are worried now — before the service is open to the world.

Wired reported, on Wednesday, Federal Reserve Chair Jerome Powell told the House Financial Services Committee that “Libra raises serious concerns regarding privacy, money laundering, consumer protection, financial stability”. And also because of Facebook’s history of privacy missteps, officials demanded Facebook to halt development until it answers questions about the privacy of its new blockchain project.

Jerome Powell told because of Facebook’s huge user base the new digital currency Libra poses serious risks to global financial stability and the process of addressing these concerns should be a patient and careful one. Not only FED, other top regulators in Europe and Asia are also raised their concerns about the Libra.

Facebook’s David Marcus, head of Facebook’s Calibra digital wallet that will be used to store Libra, is scheduled to testify before the committee on July 16, while the House Financial Services Committee will hold its own hearing focused on Libra on July 17.

Sabarinath is the tech-savvy founder and Editor-in-Chief of TechLog360. With years of experience in the tech industry and a computer science background, he's an authority on the latest tech news, business insights, and app reviews. Trusted for his expertise and hands-on tips for Android and iOS users, Sabarinath leads TechLog360 with a commitment to accuracy and helpfulness. When not immersed in the digital world, he's exploring new gadgets or sharing knowledge with fellow tech enthusiasts.


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