Over 30 advocacy groups have appealed to the Congress by signing a letter which requests that through its legislative or regulatory powers the body should stall the process of development of Libra, Facebook’s much-awaited cryptocurrency. They have requested this halt until Congress is able to scrutinize and judge the several aspects of the proposed cryptocurrency project. The letter was published on the 2 July and the Congressional hearing is scheduled on 16 and 17 July.
The letter is also directed at Facebook, the social media giant behind this project. The eminent individuals who have signed this letter appealed to the company to itself halt the development of the project.
Reasons for Concern
The letter has raised a concern about the company’s claim regarding the stability of the coin’s value. The letter has stated that before proceeding with the development of the project the company should clarify, what are the measures or checks which will be built into the platform that will prevent the Libra Association from tampering with the value of the token. Moreover, the letter states that there is a lack of clarity regarding how the platform will be immune to the imposition of any kind of fee on the transactions by the association.
Congresswoman Maxine Waters had raised questions about the integrity of the company, the privacy of users and other financial malpractices that might be carried out by the company which will have virtual control over the blockchain.
Calls for Devolution
In this context, Maxine Waters had suggested that Facebook should be asked to agree to a moratorium before proceeding with the project. Other experts in the domain like CEO of Polychain Capital Olaf Carlson-Wee had suggested that Facebook should preferably give up its control over the blockchain to avoid later complications. He qualified his opinion by saying, “The people who made the internet aren’t responsible for everything that is said on the internet.”