The four major consumer protection organizations, the Open Markets Institute, the Public Citizen, the Demand Progress Education Fund, and the Revolving Door Project, urged the 27 founding members of the Libra Association to withdraw from the Facebook-led cryptocurrency program.
The organizations wrote an open letter to members of the association on Thursday, including Visa, MasterCard, PayPal and Uber, urging them not to participate in the project, saying the Libra cryptocurrency will have significant competitive, political, financial and social impact.
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The goal of the project is “not clear” and its leadership structure “has problems”, these organizations said. In addition, it also believes that Libra recruits many founding members because they want to speak in their name.
The following is the full text of the open letter:
To Libra Association partners,
You are a respected member of business, finance, technology and society as a whole, and we call on you to collectively withdraw from the Libra program. The Libra program is global and is a parallel currency with significant competitive, political, financial and social impacts. The program's apparent purpose is to provide products and services to 1.7 billion people without traditional banking services. Achieving a laudable goal should not be affected by the value of a single project, its objectives are actually not clear, and its leadership structure is also problematic.
At this week's Senate hearing on "Reviewing Facebook Digital Currency and Data Privacy," Congressman Brian Schatz said that some of you have serious concerns about the Libra project, saying:
“In fact, alliance members have many similar problems. They have reservations about project development, but they don’t want to be excluded because of Facebook’s market strength.”
At the hearing, bipartisan members expressed deep suspicions about Libra's various aspects, including its potential money laundering, terrorist financing, bank runs, systemic risks, evasion of sanctions and anti-competitive activities.
Facebook is eager to show that it is just one of the many members of Libra. No one is fooled by this pretext, and the Congressional Committee is seeking answers for a reason. Even so, because you have approved this project with your own brand, Facebook is speaking at least to some extent in your name.
We know that Facebook is a powerful company that creates an atmosphere to some extent, and some people will be afraid of its market dominance. But if you collectively withdraw from the project, it will prove that the beginning of the digital currency era will be based on fairness and democracy, and it will be well thought out rather than powerful.
Open Markets Institute
Demand Progress Education Fund
Revolving Door Project