A US delegation of the House of Financial Committee led by Chairwoman Maxine Waters met with the Swiss authorities to discuss Libra. The outcome of the meeting was, however, still disappointing for Libra backers.
The areas of concern echoed with their meeting with Libra Association head, David Marcus. Congress feared that if Libra is allowed it will give a tremendous amount of autonomous power to Facebook.
Since Geneva houses the Libra Association, the lawmakers went on the epicentre of the cryptocurrency. After the meeting, Chairwomen Waters told the media,
“While I appreciate the time that the Swiss government officials took to meet with us, my concerns remain with allowing a large tech company to create a privately controlled, alternative global currency,”
Marcus had testified before the US senate that they chose Switzerland as their base camp due to the clarity of regulations around cryptocurrencies there. Moreover, Libra will be a global currency; hence, apart from beginning in the Swiss, they will also require to procure approvals from other nations in which it wishes to operate.
Reportedly, Waters met with the representative from Switzerland’s State Secretariat for international finance, legislature, market authority, and data protection and security. They helped with her understanding of the “status, complexity, and magnitude of Facebook’s plans,”
The concerns of the U.S. lawmakers on Libra are around the massive userbase of Facebook (about 2.3 billion) and its privacy violations in the past. The Committee will now begin to analyse its impact and the regulations that must be imposed.
Ever since Libra announcement, many nations including the UK has been positive around the idea of a global currency.
Furthermore, China is expected to shortly launch its’ Central Bank Digital Currency, the ‘digital renminbi’. Hence, Libra or not, the U.S. will be looking to dominate this space as well.
Do you think that Libra will get a ‘green’ signal from the US lawmakers? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com