Facebook has a long way to go with Libra

There are many legal barriers keep Libra from becoming popular. Facebook chief operating officer Sheryl Sandberg has recently admitted the company has a long way to go for the purpose of issuing crypto coins. Now, policy makers are scrutinizing whether Libra will work. The US Congress is scheduled to hold a hearing next month. Responding to Bloomberg TV at the Cannes Lions International Fashion Festival in France, Sandberg acknowledged that authorities are particularly interested in Facebook’s new move. “We are ready to meet them. We know we have a lot of work to do. There will be a clear roadmap for people to participate and help them”, said the Facebook leader. Earlier, the social networking giant revealed a new financial system plan based on a highly stable digital currency backed by cash and government bonds. Project after more than one year of preparation with 27 support partners launched on June 18, 2019. But immediately, politicians from America to Europe vehemently protested. Some parliamentarians in Washington fear whether the money is closely monitored, while the French Finance Minister warned of money laundering and terrorist financing. On Wednesday, the US Senate Banking Commission said it planned to hold a hearing on July 16 to clarify Facebook’s privacy and encryption. Senator Sherrod Brown of the Democratic Party, a member of the Banking Committee, and a legislator, expressed skepticism about Facebook’s ability to protect financial data. This is purely grounded, as currently, social networking giant is constantly involved in many user information leak scandals. “We want to announce the project soon. Because we know that is an important area with strict regulations. Facebook needs to discuss and meet with many high-level characters. Now the company is also conducting meetings and then will issue coins, “said Sandberg. Facebook’s crypto currency, called Libra, is expected to be released in early 2020. It is based on blockchain technology, but the method of issuing coins is not based on “digging” activities like Bitcoin. Instead, Libra relies on real assets in the same way that central banks issue paper money. Facebook currently has about 2.4 billion users so the new payment project will have a huge impact on changing the world financial system. Recently, this social network has been involved in many scandals related to user information security, especially the case of Cambridge Analytica. CEO Mark Zuckerberg had to go to the US Congress for a hearing. And yet, Facebook also faces the risk of separation due to worrying about the scale. The plan to build Libra once again makes people worried about the power of the social networking giant.