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There's a big problem with Facebook's Libra cryptocurrency
Since Libra's unveiling, the project has gotten a chilly reception from some policymakers. On Wednesday, Federal Reserve Chairman Jerome Powell signaled skepticism about Facebook's plans for Libra.
"I don't think that the project can go forward ... without there being broad satisfaction with the way the company has addressed money laundering, all of those things," Powell said in testimony before the House Financial Services Committee. He added that the project raised "serious concerns" for regulators.
According to The New York Times, even some of Facebook's official partners are lukewarm on the project. Partners are slated to contribute $10 million each to help fund the launch of the network. But the Times' Nathanial Popper reported in late June that "no money has changed hands so far," and he noted that some of the companies who agreed to lend their names to the project avoided making strong public statements in support of it.
That reflects significant uncertainty about how Libra will actually work—and if it's even possible to launch a network like this within the bounds of the law. Facebook is trying to build a payment system that combines the best characteristics of blockchain and conventional networks. But the result may wind up just being a contradictory mess that leaves almost everyone dissatisfied.
See Also Facebook is backpedaling from its ambitious vision for Libra
(Score: 2) by The Shire on Saturday July 20 2019, @07:25PM (4 children)
There are already talks going on about breaking up Facebook. If they want to pursue this currency then let them spin off an independent company registered as a banking entity and they can do it there with the proper financial oversite and regulation and with no cross talk with FB itself. To add another branch to an already ponderous monopoly will never be allowed.
(Score: 2) by takyon on Saturday July 20 2019, @07:31PM (2 children)
It's all good, fam. The Libra Association [libra.org] will protect the little guy.
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 2) by The Shire on Saturday July 20 2019, @08:44PM
Switzerland... lulz. If they want to operate in the US they best register as a US Banking Organization and subject themselves to the same laws and regs any other bank does. I imagine the same should be true in the EU which Switzerland is conspicuously not a member state of. There's a reason they're operating out of Switzerland considering the lack of oversight there.
(Score: 0) by Anonymous Coward on Sunday July 21 2019, @01:21PM
They don't even know it.
https://www.cnbc.com/2019/07/16/fdpic-says-facebook-has-not-contacted-about-libra-data-protections.html [cnbc.com]
(Score: 0) by Anonymous Coward on Sunday July 21 2019, @05:54PM
a shill for the banksters? so gross!