Facebook to appear before Senate Banking Committee regarding Libra cryptocurrency

Cal Jeffrey

Posts: 2,725   +662
Staff member

The Senate Banking Committee announced on Wednesday that it would hold a hearing on Facebook’s proposed Libra cryptocurrency.

“Examining Facebook’s Proposed Digital Currency and Data Privacy Considerations,” as it is called, will be held July 16 at 10am EDT and will be live streamed to the public via the Banking Committee’s website. Government officials began calling for an investigation of the initiative shortly after Facebook announced it earlier this week.

Obviously, with the social media giant’s recent battles over consumer privacy, Congress has reservations on whether it should be trusted to introduce new crypto to the market.

The committee has not announced a list of witnesses to be questioned, promising to disclose that at a later date. Presumably, those close to the project will be in attendance. Indeed, sources told The Verge Libra and Calibra lead and co-founder David Marcus would be providing testimony.

Democratic Senator Sherrod Brown, who initiated the probe tweeted Tuesday, “Facebook is already too big and too powerful, and it has used that power to exploit users’ data without protecting their privacy. We cannot allow Facebook to run a risky new cryptocurrency out of a Swiss bank account without oversight. I’m calling on our financial watchdogs to scrutinize this closely to ensure users are protected.”

Reuters reports that the House Finance Committee is calling for hearings as well. Committee Chair Maxine Waters said that she believes work on the proposed cryptocurrency should be halted until officials have thoroughly investigated the matter.

“Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data,” Waters said in a statement. “With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users.”

Facebook plans to fully cooperate and provide testimony in the hearings but said it was not planning on halting development.

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psycros

Posts: 3,273   +3,599
Government hates it when someone beats them at their own game. A shame that our leaders don't apply the same standards to themselves as they do the public. That said, Facebook and Google are massive threats to democracy and privacy. Worse, they've set a horrible precedent that's become the norm - EVERY company is now actively trying to acquire and misuse as much personal information as possible. The massive data breaches that make the news every other day have proven that the government must lead the way in undoing this Orwellian nightmare. If lawmakers and regulators don't respond quickly enough then it will be time for the public to work together to render the data gathering machine obsolete. Never provide more info than is needed to process a transaction, particularly where websites are concerned. No brick-and-mortar store needs your phone number, email address or anything but your signature when purchasing. Protect your online activities with VPNs and encryption. NEVER put your actual full name, birthdate, phone number or similar information on social media, web forums or anything except legitimate government and commerce sites.
 
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Uncle Al

Posts: 7,756   +6,381
It's bad enough that Zuck is allowed to get away with so much, allowing him to privatize his own money supply will make it infinitely easier for him to move large sums of cash without the IRS's knowledge. Isn't it about time that the government drops the hammer on this petty crook .....
 

NicktheWVAHick

Posts: 224   +247
Facebook Reserve to replace the Federal Reserve. Zuckerberg as the new Alan Greenspan dictating interest rates and US (thus global) monetary policy. NYSE and NASDAQ eventually replaced by ZFSE (Zuckerberg Facebook Stock Exchange). I see no problem with this whatsoever.
 

fps4ever

Posts: 616   +796
It's bad enough that Zuck is allowed to get away with so much, allowing him to privatize his own money supply will make it infinitely easier for him to move large sums of cash without the IRS's knowledge. Isn't it about time that the government drops the hammer on this petty crook .....
It's bad enough they censor conservative opinions and allow rampant fake news stories to sway elections then claim they are not a news agency or news aggregate.