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Home / Business / Finance Minister & # 39; not comfortable & # 39; with Facebook's cryptocurrency growing as bipartisan hostility

Finance Minister & # 39; not comfortable & # 39; with Facebook's cryptocurrency growing as bipartisan hostility



Finance Minister Steven Mnuchin talks to reporters about cryptocurrency at the White House on July 15, 2019 in Washington, DC.
Photo: Chip Somodevilla / Getty

Facebook's plan to introduce the Libra cryptocurrency is severely curtailed by federal officials who have expressed concerns about their potential use to circumvent money laundering regulations and to fund other illegal activities

The House Financial Services Committee Democrats have already issued bills designed to foreclose $ 25 billion of US technology companies from digital currency spending and those who do so with a fine of up to $ 25 billion To punish 1 million US dollars per day. The bill, which would effectively prevent Facebook from behaving like a financial institution, is titled "Keep Big Tech Out of Finance Act".

As many agencies have reported, the draft bill is in part: "A big platform company can." Do not construct, maintain or operate any digital assets that are generally to be used as a means of exchange, unit of account, store of value or other similar functions within the meaning of the Federal Reserve System Board. "

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The Democrats are not alone in their opposition to the plans of Facebook. Last week, President Trump signaled that he too is not a fan, tweets that the Libra will have "little reputation or reliability". "I'm not a fan of Bitcoin and other cryptocurrencies that are not money, and its value is very volatile and based on air," he said.

At a press conference on Monday, Trump's Treasury Secretary Steven Mnuchin framed the issue on grounds of national security and said he was "not happy" with Facebook's plan today. The secretary said his department had "very serious concerns" that the scale could be used to detect the crimes of money launderers and terrorists.

"Cryptocurrencies like Bitcoin have been exploited to illegally support billions of dollars of activities such as cybercrime, tax evasion, extortion, ransom, illegal drugs and human trafficking," Mnuchin said. "Many players have tried to use cryptocurrencies to stop their malicious behavior

David Marcus, Facebook's top supervisor of the Libra project, is scheduled to testify Tuesday before the Senate Banking Committee and Wednesday before the House Financial Services Committee.

In his prepared remarks Facebook released on Monday Marcus that Libra – and Facebook's digital wallet, known as Calibra – will fully comply with the Financial Crimes Enforcement Network's (FinCEN) rules and will be consistent with the banking secrecy law and other federal laws.

"The status quo does not work for many; for mens It's too expensive to spend and transfer money all over the world, "he said. "We believe that the scale can provide a more efficient, cheaper and safer alternative." He also expects the scale to be regulated by the Federal Data Protection and Information Commissioner.

Libra is managed by a nonprofit organization based in Geneva with 28 founding members, of which Facebook is only one. Others are Ebay, Uber, Lyft, Visa, Paypal and Mastercard. But according to the New York Times, even Facebook's top-class partners have their doubts about Libra's viability, and many are just as curious as we are about how everything will develop.


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