All about trust – are lawmakers right when it comes to Libra and Facebook’s entry into cryptocurrency?July 17, 20192 min read
It’s not the first time Facebook has faced Congress. This time, the social media giant came to Washington to discuss its new Libra cryptocurrency. As their new venture into the Fintech industry. Libra, claims Facebook, will keep a customer’s money safe by using the blockchain process. However, the talks didn’t seem to generate a lot of ‘likes’ by members of either party on the Hill.
Many lawmakers questioned Facebook (FB) executive David Marcus about why people should trust the company to manage their money and why they should trust Facebook to lead the way on a major new fintech regulation that could fundamentally change global financial systems.
"Facebook's motto is move fast and break things," Sherrod Brown, the Committee's senior member, said. "They've moved fast and are helping to undermine our democracy. Now they're expecting us to trust them with our paychecks." July 16 – CNN
There are concerns about the currency undermining the federal reserve, about control, regulation and responsibility.
- But should lawmakers be that worried?
- What are the potential consequences to Libra launching?
- What are the benefits?
- And why is Facebook even going down this path?
There are a lot of questions to be asked – and if you are a reporter covering this topic, our experts can help.
Eric Overby's research focuses on the transition from physical to electronic modes of interaction and its effect on market efficiency. Eric is available to speak to media regarding blockchain or any other technology related topics – simply click on his icon to arrange an interview.