Digital currency is suspended, Facebook faces three challenges of public, industry and policy

Digital currency is suspended, Facebook faces three challenges of public, industry and policy

When it’s awesome, Facebook’s Libra plan is called to stop.

On July 2nd, US local time, the US House Financial Services Committee officially sent a letter to Facebook asking Facebook to immediately stop all work on the Libra stable currency and the Calibra project. The recipients of this letter include company CEO Zuckerberg and other executives.

According to the letter, the Financial Services Commission believes that Libra and Calibra may help a Swiss-centric global financial system, but the financial system may challenge US monetary policy and the status of the US dollar.

The House directly called

Digital currency is suspended, Facebook faces three challenges of public, industry and policy

In addition to enumerating a series of hacker thefts and system vulnerabilities in the recent digital currency field, the Financial Services Commission has also raised questions about Facebook’s own user privacy disclosures, data violations, and negative social effects. Money laundering transactions and monetary policy security expressed concern.

The letter said: Facebook's digital currency plan will lead to serious privacy, transactions, national security and monetary policy issues. Not only is Facebook more than 2 billion users, the global economy, investment institutions, and consumer interests may be affected.

Finally, the US House Financial Services Committee asked all partners of Facebook and the Libra Association to stop implementing Libra and Calibra-related programs immediately, until regulators and Congress recently reviewed the issues and took action.

Industry analysts pointed out that although the Financial Services Commission has no right to stop the commercial activities of a US company from a legal perspective, it is impossible for Facebook to ignore this from the perspective of government regulation and national will behind it, considering that Libra will be in Europe and the United States in the future. The regulatory issue, the project is likely to be suspended for quite some time.

In fact, after the recent release of the Libra Digital Money Project, Facebook not only faced challenges at the government level, but also at the relevant industry bodies and the public level, doubts and uneasiness were widespread, and to some extent formed with the regulatory authorities. A huge wave of opposition at the policy, industry and public levels.

Opposition to the industry

Digital currency is suspended, Facebook faces three challenges of public, industry and policy

Just this Monday, more than 30 US consumer protection organizations publicly called for relevant regulators in the United States to take action on Facebook's entry into the crypto-equity. These institutions that received letters of appeal included the US Securities and Exchange Commission and the US Federal Trade. The Commission, the Office of the US Trade Representative, and the US Commodity Futures Trading Commission. Related recipients include the recently established Facebook subsidiary Calibra and members of the Libra Association.

These organizations and groups say that the potential risks to consumers using Libra are very high. They demanded in the appeal statement that they must stop all actions before Facekbook answers all the questions.

The most important appeal in the appeal statement is that Facebook is expected to stop the project as soon as possible so that the regulator can understand the details of the encrypted asset project. The interim alliance of 33 consumer rights organizations, including the Institute of Citizenship and Economic Policy and the Digital Social Center.

The appeal statement highlights several important concerns: first, it points out that US regulators cannot grasp whether Libra affects global finance and the protection of consumer rights because the outside world lacks a lot of important information about Libra. Second, the statement emphasizes Libra's information security. The protection of consumer rights and how Facebook cracks down on money laundering can ensure that members do not collude with the digital currency through interest collusion; in the end, the statement states that countries cannot confirm whether Libra will affect the national sovereignty of developing countries.

As mentioned earlier, Facebook has indeed caught the attention of developed countries in the global economy. They are more or less concerned about the influence of the world's largest social network to enter the encrypted digital currency. Government agencies such as the United Kingdom, France, and Germany, including US regulators, expressed concern about the San Francisco-based social giant.

Currently in the European Union, the G7 Digital Currency Working Group has just been formed to help regulators learn more about the scope of the project and its possible impact on global finance.

The public may not be willing to buy it

Digital currency is suspended, Facebook faces three challenges of public, industry and policy

According to a report on the digital currency media Block Chian on the 1st of this month, the US financial services company Jefferies released a survey report that many US users said they would not use Facebook's upcoming Libra due to lack of trust. Encrypted currency.

The survey included findings from more than 600 respondents. The report shows that about four-fifths of people were asked if they would buy (use) Libra when they chose “not likely” or “completely impossible”; 45% of respondents said they were not willing to buy Libra because Facebook lacks trust. Some respondents said that unless you don't care Facebook may access your trading data.

According to the report, nearly 40% of respondents said they already have a mobile (digital) payment wallet, thus eliminating the need to use Libra-related digital wallet Calibra. The report further states that, in fact, without substantial network effects, we expect Libra to be difficult to replace the existing form of cashless payments – at least not in the near future.

Among the respondents who expressed interest in using Libra, 12% said they would only spend money on goods or services, and 14% would send money (transfer) to friends and family through this digital currency. 15% of people will use Libra in both cases.

The results of this survey are consistent with the judgment of some financial analysts. On Friday, Ryan Waldoch, an analyst at Seeking Alpha, a well-known stock research platform, said in a report: "We believe that Libra will make users more inclined to use Bitcoin as a peer-to-peer payment system. Uncertainty in the global digital money market is prompting investors to flock to Bitcoin as a means of value storage."

Of course, the voice of support is also constantly voiced. Bince Labs partner Teck Chia has publicly stated that Facebook's Libra project has made the public an important step in raising awareness of cryptocurrencies. “I think that for companies like Facebook, there is such a huge influence and cooperation network around the world that will enter different countries around the world – let them be interested in cryptocurrencies and launch corresponding cryptocurrencies, which is for us. The industry is a very positive thing."

Regardless of support, questioning or worry, at least in the current situation, Facebook can't violate the national will, so stopping the Libra project is imperative. This also makes the voice of the blockchain and digital currency without borders, Facebook will promote the cryptocurrency in a fair and open environment temporarily disappeared. After all, digital currency is not operational without government support.

Some people pointed out that the digital currency is unlikely to be popular in 5 to 10 years, because it is likely to destroy the world monetary system, resulting in the disappearance of the value of the French dollar, the euro, the British pound and other legal currencies. In particular, such a digital currency is initiated and dominated by Facebook, which has nearly a quarter of the world's users. The most important thing is that digital currency always has anonymous transactions, hidden money problems and security risks. It is difficult to achieve a truly reasonable management system, and the supervision is quite difficult. The future of the digital currency or the license period, but the full landing will still be a long time later. (Blue Whale Finance)