US Lawmakers Return From Switzerland Still Wary of Facebook’s Libra

August 27, 2019 / by Crypto.IQ

US lawmakers visited Switzerland in a cryptocurrency-related delegation that has failed to alleviate concerns around Facebook’s Libra.

Libra, the stablecoin Facebook hopes to launch was supposed to be managed by the Libra Association, formed by a list of invested companies and would be incorporated in Switzerland – one of the most crypto-friendly countries in the world.

U.S. lawmakers have had a swift negative reaction to Libra’s launch and have put a huge dent in Facebook’s plans during Committee hearings with the company’s head of blockchain, David Marcus.

After flying to Switzerland to meet with Switzerland responsible agencies in order to determine the country’s role in regulating the proposed digital asset, Waters stated she is still pretty worried about Libra.

Waters has expressed gratitude towards the Swiss regulators for helping them better understand Facebook’s endeavor, but she maintains a skeptical stance on the cryptocurrency:

“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. I look forward to continuing our Congressional delegation, examining these issues, money laundering, and other matters within the Committee’s jurisdiction.”

Waters was among the biggest critics of Libra ever since it was announced in June. She has issued a public warning that Facebook must put its Libra digital currency on hold so regulators can consider whether it’s a new threat to consumers and the global economy.

In her statement, Waters said that there was a pattern of failing to keep consumer data private on a scale similar to Equifax. Waters added that Facebook allowed malicious Russian state actors to purchase and target ads, which purportedly influenced the 2016 U.S. presidential elections.

The regulatory pressure Facebook is currently under has led some companies to start re-considering their involvement with Libra. According to an early backer speaking to Bloomberg,

“I think it’s going to be difficult for partners who want to be seen as in compliance [with their own regulators] to be out there supporting [Libra].”