Facebook’s Libra currency has been under fire since before it was officially announced.now that it is announced, that fire has turned into bombs, grenades and pretty much everything in-between. Regulators have been imploring the social network to review the project, postpone it and some have even called for it to be cancelled.
Politicians in the UK share this similar sentiment on the upcoming stablecoin, amid concerns that the social giants’ entrance into the world of finance would be giving it to much power.
Similarly, the United States counterparts have questioned Facebook’s blockchain leader David Marcus recently over the upcoming currency.UK politicians are eager to get a better understanding of Facebook’s ability to protect the users’ financial data following a string of scandals.
The chair of the House of Common’s, digital, culture, media and sport committee, Damian Collins has said: “to me, [Libra] suggests that Facebook’s almost trying to turn itself into its own country.”
A long-time critic of Facebook, Collins has led an 18-month investigation into the firm following the aftermath of the highly publicised Cambridge Analytica data fiasco.
“It’s a global organisation that doesn’t have physical boundaries but basically has a global community who are solely under the oversight of Mark Zuckerberg [its CEO].”
“If we’re going to have this payment system created by Facebook that exists within a Facebook walled garden, which no one really has access to or can question, then our concern has got to be that this system is going to be open to massive fraud.”
Marcus has addressed some of the concerns surrounding Libra when he told senators in the United States, “You won’t have to trust Facebook to get the benefit of Libra.”
Whether the UK government will follow in the US senators footsteps to launch its own probe is unknown, but it is likely that the questions will keep on flooding in, in regards to the stablecoin, especially when you consider Collins’ history with the social media giant.