The US government as getting increasingly worried about what Facebook’s Libra will do to monetary policy. Waters recently travelled to Switzerland to speak to regulators who are said to be happy to regulate the coin in their jurisdiction.
Her comments kicked off on the cautious side as she said:
“While I appreciate the time that the Swiss government officials took to meet with us, my concerns remain with allowing a large tech company to create a privately controlled, alternative global currency,”
Maxine Waters has been investigating Libra for months and now she has confirmed that she is still looking to speak to more regulators and representatives.
She said she is still looking to speak to:
“Treasury Secretary Mnuchin, Consumer Financial Protection Bureau Director Kraninger, Federal Housing Finance Agency Director Calabria and Federal Reserve Vice Chairman Quarles.”
Apparently, she asked the social media giants to halt the development of the stable coin and said:
“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.”
It does not seem like an easy task as there as 28 members of the Libra association including Visa, Mastercard, PayPal, eBay, Uber, Spotify, and others, who have said to have invested a minimum of USD 10 million in the venture.
So the saga continues as the stand-off between Facebook and the government continues. Thing seem to be getting heated as the last comment from Waters was said to be “Will you stop dancing around this question and commit here in this committee “¦ to a moratorium until Congress enacts an appropriate legal framework to ensure that Libra and Calibra do what you claim it will do?”. I am sure we will hear more about this developing story in the coming weeks and months.
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