The social media heavyweight has publicized the Libra token’s white paper yesterday. The stablecoin, which will be facilitated by a native eponymous blockchain, will be supported by a number of reserve assets, “designed to give it intrinsic value”, and help reduce the fluctuating rate of volatility.
Upon the announcement of the Libra projects, regulatory bodies of the U.S have expressed doubts towards it, specifically, whether the project will cause any potential impact on the financial stability. Maxine Waters – representative of the US Financial Services Committee – has requested Facebook to put a hold on the developing process, until thorough analysis from the regulators are carried out.
“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.”
Thus, on July 16th, the Banking Committee will reportedly organize a hearing session – called “Examining Facebook’s Proposed Digital Currency and Data Privacy Considerations.”
During an interest rate speech on June 19th, Jerome Powell – the U.S. Federal Reserve director – has revealed that Facebook has sought consultancy from regulators before initiating its project.
“[Facebook] has made quite broad rounds around the world with regulators, supervisors and lots of people to discuss their plans and that certainly includes us.”
Authorities in foreign nations have also raised concerns regarding project Libra. Bruno Le Maire – French Minister of the Economy and Finance Bruno – said that French government requested Facebook to provide “guarantees” regarding Libra.