Finance Minister Steven Munchin has concerns about Facebook's proposed crypto flag and its potential illicit use. "CryptoLabs like a battleship have been used to support billions of dollars in illegal activities such as cybercrime, tax evasion, extortion, cyberbullying, illegal drugs and human trafficking," Munchin said. that he is "not comfortable" today with the release of Facebook.
"They have to do a lot of work," he said.
The press conference comes days after President Donald Trump said he was "not a fan of" cripples like a battleship. He also suggested that Facebook, which plans to launch a global cryptolight next year, will need a bank charter to do so. Bitcoin dropped sharply on Monday after the president's Twitter criticism. The first and most valuable digital currency in the world fell by approximately 1
"The President has concerns because he refers to battleships and crippolites – these are legitimate concerns that we have been working on for a long time," Munchin said.
In response to comments by the Finance Minister on Monday, Facebook told CNBC that "they expect critical feedback from regulators, central banks, lawmakers around the world." The company also said that they announced Libra one year before the expected launch date "to be able to hold these talks."
David Marcus on Facebook is the boss of Facebook's Calibra digital wallet, which will be used to store Libra. before the court on Tuesday. Home Financial Services Commission will hold its own hearing focused on Libra on Wednesday. In a letter Tuesday, Marcus responded to questions from the Senate Banking Committee in the US saying that the company needed governments, central banks and regulators to properly trigger the digital asset, and Facebook "can not do it alone ".
the bank was clear with Facebook – as well as with bitcoin users – that they should apply the same measures to protect against money laundering and counterterrorism as other financial institutions.
"With regard to Facebook liberals and other developments in cryptobultures, our primary goal is to maintain the integrity of our financial system and protect it from abuse," he said.
Others in Washington also called for greater clarity on Facebook Project. Federal Reserve Chairman Jerome Powell said last week that he had "serious concerns", including money laundering and consumer protection, and set up a working group within the central bank to investigate. Congressional members of both political parties also questioned Facebook's motives. Representative of Maxine Waters, D-Calif., Chairman of the Financial Services Commission, has asked the technology giant to delay the project, which she says is a continuation of her "uncontrolled expansion and expansion in consumer life." In June, Facebook announced that it would launch the cryptoLight managed by the Swiss-based Libra NGO in 2020. The digital asset will not be controlled or wholly owned by Facebook, according to its White Paper. Instead, it is managed by a number of other stakeholders, including Uber, Mastercard, Stripe, Visa, PayPal and Spotify. However, Facebook plans to take advantage of this through a new subsidiary, Calibra, which builds a digital portfolio to store and exchange crypto data.
Subscribe to CNBC on YouTube. – Julia Bortin and Fred Imbert contributed to the report.