The social media giant, Facebook is poised to set a clear footing into the cryptocurrency market as Mark Zuckerberg faces Congress on all things Libra and advertising policies. This hearing marks an important foothold for Facebook’s digital currency dream as both the firm and its project have been under the regulatory scrutiny since the announcement of the launch.
The firm trumpeted its step into the digital currency space earlier this year by unveiling its own cryptocurrency dubbed Libra, managed by Libra Association. The launch of a cryptocurrency was not the only eye-catcher, but also its partnership which included big firms such as PayPal, Visa, Mastercard, and Stripe.
This grandiose entry was however short-lived as the firm and the entire project were shunned by several regulatory authorities around the world on the very day it was announced. The hostile regulatory environment eventually resulted in the above mentioned big firms withdrawing their support on a project that “promised financial inclusion.”
One of the most notable people to oppose Facebook’s step in the financial markets was Democratic Rep. Maxine Waters, chair of House Financial Services Committee. Rep. Waters had stated in a statement,
“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action”
Now, Zuckerberg will testify in front of Congress on the prospectives of Libra. And so far, things don’t seem to be going well for Facebook, with Rep. Maxine Waters stating “You have opened up a serious discussion about whether Facebook should be broken up” and strongly affirming that Facebook should cease its cryptocurrency project.
Video source: Washington Post