A lot of news posts about Libra this morning, and all of them highlight that Libra will have to face heavy opposition by Congressmen, and by Advocacy groups.
US House Financial Services Open Letter
The US House of Representatives Committee on Financial Services published an open letter to Mark Zuckerberg, Sheryl Sandberg and David Marcus requesting them to immediately stop the development of the Libra project. This letter comes ahead of July 16 and 17 hearings by the House Financial Services Committee.
We write to request that Facebook and its partners immediately agree to a moratorium on any movement forward on Libra- its proposed cryptocurrency and Calibra-its proposed digital wallet. It appears that these products may lend themselves to an entirely new global financial system that is based out of Switzerland and intended to rival U.S. monetary policy and the dollar. This raises serious privacy, trading, national security, and monetary policy concerns for not only Facebook’s over 2 billion users, but also for investors, consumers, and the broader global economy.
They also mention Facebook’s notorious inability to keep their users’ information safe and reminding them of the Cambridge Analytica case.
These risks are even more glaring in light of Facebook’s troubled past, where it did not always keep its users’ information safe. For example, Cambridge Analytica, a political consulting firm hired by the 2016 Trump campaign, had access to more than 50 million Facebook users’ private data which it used to influence voting behavior.
The letter was signed by Rep Maxine Waters, Chairwoman, Rep Carolyn Maloney, Rep Wm. Lacy Clay, Rep Al Green, and Rep Stephen Lynch.
33 Lawmakers have Requested Congress to demand Facebook to Stop Libra
Coinspeaker.com has published an article on Wednesday 03 of July, in which it stated that 30 lawmakers from different departments signed a document asking the Congress to demand Facebook to halt Libra’s development. They are basing their petition on concerns about “profound questions raised by the proposal”.
“The plan for Libra makes explicit and implicit promises to consumers – such as the claim that value will remain stable – but what is to stop the Libra Association from changing policy in order to, for example, degrade the value of Libra or to impose a microtax on every Libra transaction?”
Source – Coinspeaker.com
Lawmakers also raised concerns about privacy, in joint support to Maxine Waters’ open letter to Facebook. They stated that the Libra project might lead “to an entirely new financial system that is based out of Switzerland and intended to rival the U.S. monetary policy and the dollar.”
The complete article is here.
The UK Regulators will be Closely Looking at Libra
Christopher Woolard, FCA’s executive director of strategy, speaking at the University of Cambridge said on Tuesday that “Libra size and scale will pose questions for society and government. More generally about what is acceptable and desirable in this space.” He also criticised Facebook’s policy of moving quickly and sabotaging competitors to gain dominance, and advising that in this case, a move-quick strategy won’t work.
“Historically, this may have been a sector that has lived by the mantra of ‘move fast and break things,’ but the issues raised here require deep thought and detail,” he said
The article mentions, also, that the FCA may introduce fees to dissuade monopolistic behaviour. You can access the complete article here.
Cybercriminals creating Phony sites impersonating Libra and Calibra
A report by Digital Shadows, a data security company, warns that cybercriminals have registered over 100 websites under Libra and Calibra impersonations. The domains have been designed to look like the official ones, but use some Greek and Cyrillic characters instead of corresponding Roman characters. For example, it could use the Cyrillic “a” which is very similar to the Roman counterpart.
For the most convincing of sites, it can be nigh-impossible to determine which is legitimate and which is fake,