Even after the Switzerland visit, the concerns about Facebook’s ambitious and much-talked-about Libra crypto project remain unanswered for the United States regulators.
According to the latest reports quoting the Representative Maxine Waters’ official statement on 25th August 2019, the United States House of Representatives Financial Services Committee members had a meeting with Switzerland’s several lawmakers, as well as regulatory agencies, including the Financial Market Supervisory Authority, the Federal Data Protection and Information Commissioner, and the State Secretariat for International Financial Matters.
As per Waters, the meetings were helpful, but the concerns remain. Elaborating further, Waters said that while they appreciate the government officials of Switzerland for taking out time to meet the US lawmakers, their concerns about allowing a tech giant to build an alternative and privately controlled global currency remain.
It is vital to note that the visit aimed to get clarification on the Swiss authorities’ plan when it comes to Libra regulations. They also saught more insights into the project’s magnitude and status. However, as it turns out, many lawmakers of the US were not quite convinced even after their scheduled meeting.
The US lawmakers raised concerns that the social media biggie would move to Switzerland in order to avert the legal scrutiny. For all those wondering, Switzerland is recognized for having lenient digital currency regulations, making it an attractive option for both established and emerging crypto firms. And previously, David Marcus, Libra co-creator and Facebook’s messaging products’ VP, had stated during the July Congressional hearings that the mountainous Central European country was a “good regulatory fit” for their Libra project.
Waters stated earlier in the week that the Congress would carry on their Libra probe. Continuing further, Waters added that “a further review” would remain at precedence for the Committee in the upcoming legislative session.
The crypto community already knows that Waters had requested Facebook to stop development on the Libra project while the authorities probed the project along with its potential effects on the US monetary policy in addition to the economy. In response to the issue and global concerns, Marcus has stated that they wouldn’t launch the stablecoin until all the concerns of the regulators are addressed.