Facebook's plan to launch Libra's cryptoLive is facing major reprisals by federal officials who have expressed concerns about the prospect of being used to comply with the anti-money laundering rules and the funding of other illegal activities.
The Democrats of the House of Financial Committees have already drafted bills aimed at banning US technology companies with $ 25 billion in annual digital money and fines to $ 1 million a day. The bill, which in practice will ban Facebook from acting as a financial institution, is entitled "The Big Technologies Act to Get Out of Treasury."
As reported by numerous retail outlets, the draft law states: "Not to create, maintain or operate a digital asset that is intended to be widely used as a means of exchange, unit of account, book value or other similar function as defined by The Governing Council of the Federal Reserve System. "
The Libra Facebook project has been snatched from all sides by" Serious … "
The problematic Libres cryptoblock project, which has already entered significant …
Democrats are not alone in opposing Facebook's plans Last week, President Trump said that he was not a fan, tweets that Libra would have "little standing or reliability" "I'm not a Bitcoin fan and other crypto-greens that are not money and whose value is highly volatile and is based on "At a news conference on Monday, Trump's treasury secretary Stephen Munchin questioned as a matter of national security and said he today does not feel comfortable with Facebook's plan The secretary said his department has raised "very serious concerns" that Libra can be used to commit money laundering crimes and terrorist financiers.
"CryptoLabies like Battlecamp have been used to support billions of dollars in illegal activities such as cybercrime, tax evasion, extortion, cyberbullying, illegal drugs and human trafficking," said Mnuchin, "Many players have tried to use crypt "
David Marcus, the senior Facebook employee who monitors the Libra project, will testify to the Senate Banking Committee on Tuesday and to the Financial Services Commission on Wednesday
In the prepared your remark and that Facebook published on Monday, Marcus said Libra – and Facebook's digital portfolio, known as Calibra – will be in full compliance with the rules set by the Financial Crime Control Network of the Ministry of Finance (FinCEN) and will complies with the Bank Secrecy Act and other federal laws
"The statute does not work for many, it is too expensive for people around the world to use and transfer their money," he said. "We believe Libra can offer a more efficient, cheaper and more secure alternative." He also says he expects Libra to be regulated by the Swiss Federal Commissioner for Data Protection and Information.
Libra is run by a nonprofit organization based in Geneva with 28 founding companies, of which Facebook is the only one. Others include Ebay, Uber, Lyft, Visa, Paypal and Mastercard. But according to the New York Times even Facebook Facebook facebooks have doubts about Libra's viability and many of them are as curious as about how everything will evolve.