Facebook’s cryptocurrency faces increased regulatory scrutiny

Ever since the Facebook’s announcement this summer for their new global cryptocurrency Libra, it has faced increasing levels of regulatory scrutiny from government agencies across several countries. According to The Information the latest blow comes as the U.S. House wants Mark Zuckerberg to testify before the committee in January. The House have requested the meeting as a condition for another hearing with Facebook Chief Operating Officer (COO) Sheryl Sandberg on October the 29th regarding the roll out plan for the Libra cryptocurrency.

The committee’s attitude towards Libra is not exactly friendly, with the House Financial Services Committee Chairwoman Maxine Waters having been highly critical in the past of Facebook’s new digital currency.

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

Maxine Waters

It is however not only the US regulatory bodies that have raised significant skepticism towards Libra with both France and Germany announcing their intention to block Libra’s ability to operate in Europe.

no private entity can claim monetary power, which is inherent to the sovereignty of nations

Joint statement from France and Germany regarding Libra

As reported by the Financial Times all of these regulatory hiccups are potentially also what either caused or at least significantly contributed to PayPal leaving the association a few days ago.

While the Libra association is headed by Facebook it consists of 27 large companies/organisations across multiple industries, including several non-profit ones such as Women’s World Banking.