Congresswoman and chairwoman of the United States House of Representatives’ Financial Services Committee, Maxine Waters says Facebook’s Libra project and Calibra Wallet will continue to come under scrutiny in the committees fall 2019 efforts.
Waters announced the committees priorities on August 23, amongst these, the review of the controversial ‘Libra’ project featured prominently.
Waters noted that the committee will continue to provide strong oversight on the project which includes a review of the project and digital wallet. It was also noted that the committee would be ‘receiving testimony from and questioning top government officials and regulators such as Treasury Secretary Mnuchin, CFPB Director Kraninger, FHFA Director Calabria, and Federal Reserve Vice Chairman Quarles.’
As reported previously, Facebook was asked to halt further development on Libra on July 2. Zuckerberg, CEO of Facebook was asked to agree to an immediate moratorium until further research by the committee had been carried out.
It was clear from the letter than any mismanagement or lack of oversight on the Libra project could impact the global economy. As highlighted in the letters concluding statement ‘Failure to cease implementation before we can do so, risks a new Swiss-based financial system that is too big to fail.’
As reported by CNBC Rep. Patrick McHenry, the ranking Republican on the committee had requested Waters to push for a hearing on the Libra subject. ‘While there is great promise for this new technology in fostering financial inclusion and faster payments, particularly in the developing world, we know there are many open questions as to the scope and scale of the project and how it will conform to our global financial regulatory framework’ he stated. McHenry also noted that the committee needs to ‘provide a forum to assess this project and its potential unprecedented impact on the financial system.’
Waters and other ranking members of the U.S. judicial system have highlighted all areas of concern witnessed in the crypto-world, including fraud, terrorism, money laundering and tax evasion. These have all been pointed squarely at Facebook’s endeavours in context to its possible use-case of its billions of customers.