Following Maxine Waters’ call for Facebook to halt the development of its new cryptocurrency project, David Marcus, head of Libra, has assured Maxine Waters and other top members of the House Financial Service Committee that Facebook’s new cryptocurrency development team is “taking the time to do this right”.
The letter, dated July 3rd, which was sent in response to Democratic lawmakers’ Moratorium on Libra, David promised to answer lawmakers “important questions” in a bid to defend Libra’s mission.
The Rising Issues With Libra
Libra is probably facing some hard times for a few obvious reasons. First, it draws natural pessimists from the present financial system who believe that projects like Libra would disrupt the financial system.
Also, Facebook has recently received accusations of user data and privacy scandals. For a cryptocurrency project which promises to render cross-border payments services, the issues of user data and privacy are of significant interests.
Further, Facebook has a user base of over 2.3 billion globally and also possesses records of privacy scandals. This made a good subject matter for regulators around the world to predict Libra’s propensity to fail along the lines of user data protection and privacy policies.
More To Be Heard Next Week
Next week, the house is expected to hold a hearing on Libra and David, in preparation to explain the core importance and use cases of the project have assured members of the house of maximum cooperation.
The Winklevoss Brothers’ Take On Libra
During an interview session with CNBC in which the Winklevoss twin brothers were present, they expressed optimism about Libra’s future implementations and possibilities of other tech giants following the trend.
Amidst preparation for next week’s Facebook Libra’s Senate hearing, Tyler Winklevoss, during the interview, advised Facebook’s CEO, Mark Zuckerberg and his team to cooperate with lawmakers. According to Tyler,
“Work with regulators…,” “Talk with them. You know, we definitely went through the front door, and we tried to educate the regulators and shape the regulation in a thoughtful manner because if you get the regulation wrong it can stifle innovation, but the right regulation allows for innovation to flourish, and we think we have achieved that right balance with New York.”