Facebook endures a second day of criticism from Congress about its plan to create a crypto-wavewhen they were asked by the Democrats of the House of Representatives to reduce the scope of the project and threatened to approve a law that would prevent technology companies from taking part in banking.
The enormous market power of the social network and its history of scandals, fines and privacy violations were questioned on Wednesday at a meeting of the Lower House Financial Services Commission. Legislators on both sides insist they can not trust the giant social network,
"I think you are now much weaker than trustworthy and understandable"Democrat Representative Vicente Gonzalez told David Marcus, the Facebook executer who led the project, the second day when MPs asked hard questions.
Among his fears is the risk that the new currency, which will be called Libra, may be used for illegal activities such as money laundering or drug trafficking. Legislators are also concerned that the huge reserve created with the money used to buy pounds could replace the Federal Reserve and destabilizing the financial system and that customers are affected if the pound represents a loss.
The leader of the commission, the representative of the Democratic Party Maxin Waters, asked Facebook to stop its plans for the new crypt while regulators and legislators are unable to review it in detail. He repeated this request to Marcus.
Waters have considered the idea of a law that would prohibit major technology companies such as Facebook, Google, Amazon and Apple from becoming financial institutions certified or authorized Americans, and therefore be able to offer banking services and, in particular, to establish their cryptoLight.
Facebook, which leads more than 2 billion users worldwide, "is clearly trying to create a new global financial system to compete with the US dollar""Waters said.
Congressional critics have further stifled the Facebook planafter negative statements and expressions of concern by two of the most powerful financial regulators, the Fed president Jerome Powell and the Secretary of the Ministry of Finance, Stephen Munchinas well as President Donald Trump himself.
Marcus said the plan would give access to online marketing to millions of people around the world who do not have access to bank accountsand it would be cheaper to send money abroad.
The official did not agree to stop the plan.
"We will take the time to do it well"he confirmed.