This archive report was first published on 16 July 2019.
Facebook's ambitious plan to launch a global cryptocurrency, Libra, has been met with skepticism by lawmakers in the US Senate.
At a hearing on Tuesday, Senator Sherrod Brown (D-OH) expressed concerns about the company's ability to manage a global financial system, saying, 'Facebook has said 'just trust us'' and 'every time Americans trust you, they seem to get burned.'
David Marcus, Facebook's head of cryptocurrency, acknowledged the company's past mistakes and vowed to do better, saying, 'We've made mistakes in the past. We have been working, and are working hard to get better.'
However, not all lawmakers were convinced by Marcus's assurances. Senator Martha McSally (R-AZ) said, 'I don't trust you guys. Instead of cleaning up your house, now you are launching into another business model.'
The hearing was the latest in a series of events that have raised concerns about Facebook's cryptocurrency plans. Last week, Federal Reserve Chairman Jerome Powell said that Libra raised 'serious concerns' around money laundering, consumer protection, and financial stability.
President Trump also weighed in on the issue, tweeting that digital tokens like Libra and Bitcoin were 'highly volatile and based on thin air.'
Despite the criticism, some lawmakers expressed support for Facebook's initiative, with Senator Patrick Toomey (R-PA) saying, 'I just think we should be exploring this and considering the benefits as well as the risks.'
Facebook's Libra project has been in the works for over a year and aims to offer a low-cost, global financial system. However, the company's involvement has raised concerns about the potential risks and consequences of a Facebook-controlled financial system.
