Due to the authorities' increasing fears about how secure the launch of Facebook’s stablecoin Libra is, the founder and CEO of social media company Mark Zuckerberg was called to the White House to testify before the US Congress.
Zuckerberg must single-handedly appear at a hearing scheduled for October 23 at the initiative of the Financial Services Committee (HFSC), which will focus on “exploring Facebook and the network’s impact on financial services,” which means the company’s cryptocurrency project will be the only one the hearing attention will be focused on.
Earlier, David Marcus, the head of the Facebook`s crypto project, reported to HFSC and the Senate trying to clarify the politicians doubts about the confidentiality of the project. However, the authorities were not satisfied with his answers, since Marcus could not explain in detail how the company was going to solve the serious problems that were discussed at the meeting, if any should arise.
HFSC Chairman Maxine Waters has several times made an appeal to Facebook, where she asked the company to completely stop working on its cryptocurrency project until all controversial regulatory issues are fully clarified.
Facebook announced the Libra project in June and still hopes to launch it by mid-2020. However, the project faced a powerful regulatory response around the world, since the number of Facebook`s users is so large that the stablecoin emitted by it may well contribute to the destabilization of the global financial system.