The Senate Banking Committee announced on Wednesday that it would hold a hearing on Facebook’s proposed Libra cryptocurrency.
The social network’s plans for a new cryptocurrency and digital wallet app were immediately met with scepticism from regulators shortly after it was announced on Tuesday, with calls for it to be halted to allow regulators time to investigate the potential impact such a launch could have on the finance industry.
Now, Facebook has been asked to appear in front of the US Banking Committee, where a hearing will explore the project, as well as any data privacy considerations it may raise.
The committee has not announced a list of witnesses to be questioned, promising to disclose that at a later date. Presumably, those close to the project will be in attendance. Indeed, sources told The Verge Libra and Calibra lead and co-founder David Marcus would be providing testimony.
Democratic Senator Sherrod Brown, who initiated the probe tweeted Tuesday, “Facebook is already too big and too powerful, and it has used that power to exploit users’ data without protecting their privacy. We cannot allow Facebook to run a risky new cryptocurrency out of a Swiss bank account without oversight. I’m calling on our financial watchdogs to scrutinize this closely to ensure users are protected.”
Reuters reports that the House Finance Committee is calling for hearings as well. Committee Chair Maxine Waters said that she believes work on the proposed cryptocurrency should be halted until officials have thoroughly investigated the matter.
“Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data,” Waters said in a statement. “With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users.”
Libra is set for launch in 2020 and could potentially bring cryptocurrencies to the mass market by allowing the billions of users on Facebook and WhatsApp to make payment transfers across networks.
