Facebook Can't Be Trusted To Manage Payment System: US Lawmakers
IANS 20 October 2021
Sharpening the attack on Facebook, a group of US Democrats has asked Facebook CEO Mark Zuckerberg to end his digital wallet and cryptocurrency project, adding that the social network can't be trusted to manage cryptocurrency.
In a letter, Senators Brian Schatz (D-Hawaii), Sherrod Brown (D-Ohio), Elizabeth Warren (D-Massachusetts) and others said that Facebook is once again "pursuing digital currency plans on an aggressive timeline."
"It has already launched a pilot for a payments infrastructure network, even though these plans are incompatible with the actual financial regulatory landscape—not only for Diem specifically, but also for stablecoins in general," the letter read.
The letter came after Facebook launched Novi, a new digital wallet, as part of a pilot programme in the US and Guatemala, reports The Verge.
In the letter, the senators said, "Facebook cannot be trusted to manage a payment system or digital currency when its existing ability to manage risks and keep consumers safe has proven wholly insufficient."
"We urge you to immediately discontinue your Novi pilot and to commit that you will not bring Diem to market," they stressed.
Facebook and 20 partner organisations formally joined their digital currency project called 'Libra' during a meeting in Geneva in October 2019.
After facing intense criticism from lawmakers and regulators, Facebook had to shelve the 'Libra' digital currency project.
Later, the company rebranded Libra currency as 'Diem' (diem means day in Latin) which is yet to be released.
In a statement, a Novi spokesperson said on Tuesday, "We look forward to responding to the Committee's letter."
Earlier, in a bid to win regulators' hearts, Facebook had said that its cryptocurrency will offer stable coins backed by just one nation's currency, meaning some coins offered would serve as the equivalent value of a dollar or a Euro.
However, several heavyweights pulled out of the Libra project, like PayPal, Mastercard, Visa, Mercado Pago, eBay, Stripe and Booking Holdings and Vodafone over privacy concerns.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Bank Gross NPAs to Increase To Increase to 8%-9%, Stressed Assets To Touch 10%-11%: CRISIL
Moneylife Digital Team 19 October 2021
Gross non-performing assets (NPAs) of Indian banks will rise to 8%-9% this fiscal, well below the peak of 11.2% seen at the end of fiscal 2018. COVID-19 relief measures such as the restructuring dispensation, and the emergency...
Moody's Revises Outlook for Indian Banking System to Stable from Negative
IANS 19 October 2021
Moody's has revised the outlook for the Indian banking system to stable from negative suggesting that the deterioration of asset quality since the onset of the coronavirus pandemic has been moderate and an improving operating...
CBI Raids Mumbai IT Infra Co for Defrauding SBI of Rs862 Cr
IANS 11 October 2021
The Central Bureau of Investigation (CBI) has raided at least nine official and residential premises in Mumbai and other parts of Maharashtra in connection with a case for allegedly defrauding the State Bank of India (SBI) and seven...
Union Bank Imposes Penalty for Navratri Dress Code Violation, Withdraws Order After Backlash and Union Letter to CEO
Moneylife Digital Team 11 October 2021
A bizarre circular issued by public sector lender, Union Bank of India had made it mandatory for “all staff and vendor partners working on-site” to adhere to a special ‘Navratri’ dress code or be ready to cough up a steep penalty of...
Free Helpline
Legal Credit