House Financial Services Committee Chair Maxine Waters attacked Facebook’s controversial cryptocurrency plans on Wednesday, arguing that Libra is a massive threat to both privacy and national security.
“The company and its partners will wield immense economic power that could destabilize currencies and government,” Waters said.
Waters, a California Democrat, compared Facebook to other scandalous entities like Wells Fargo & Co. and Equifax Inc., two companies that have caused harm to consumers in the past.
She stated that the House hearing, the second of two hearings this week, could lead to legislation barring giant technology corporations like Facebook and Amazon from getting into the cryptocurrency game.
Waters has repeatedly argued against the new digital currency since Facebook announced its plans last month, stating the plan should not be rolled out until policy makers can fully investigate the proposal.
She’s not the only one attacking Libra, either. Earlier this week, Treasury Secretary Steven Mnuchin said he has “very serious concerns that Libra could be misused by money launderers and terrorist financiers.”
“This is indeed a national security issue,” Mnuchin added.
President Donald Trump also chimed in last week with a tweet arguing the currency “will have little standing or dependability.”
….Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National…
— Donald J. Trump (@realDonaldTrump) July 12, 2019
Facebook was not completely defenseless, though. David Marcus, the head of the company’s Libra division, stressed that multiple companies are involved in an effort to hash out any potential issues with the revolutionary currency.
During Wednesday’s hearing, Marcus argued that the crypto is not meant to compete with other nations’ currencies, and that Libra doesn’t aim to influence any central banks on monetary policy, according to Bloomberg. He went on to say that the currency’s launch will be delayed until all regulators involved approve Facebook’s proposal.