Facebook has some major problems they will need to overcome if their proposed Libra cryptocurrency is ever going to see the light of day. It seems that the Secretary of the United States Treasury has some major concerns about the possibility of Libra being exploited by various terrorists groups and other enemies of the United States. Steve Mnuchin said at a recent press conference that Libra could potentially be used as a tool to launder money and fund terrorism around the world. Therefore, Mnuchin said that Facebook’s Libra cryptocurrency was a matter of national security.
There are many lawmakers in the United States government who are not being very supportive of Facebook’s plans to get involved in the crypto business. In reality, many politicians want to prevent Libra from being launched altogether. It has not been a secret about the way that cryptocurrencies like Bitcoin have been used in the past. The anonymous nature of Bitcoin and its competitors has made it an ideal way for criminals to pay for guns, drugs or even participate in human trafficking. These transactions would take place on many sites that can be accessed on the dark web like the now defunct “Silk Road.”
Various people who will be directly involved in the Facebook Libra project will be testifying in front of a Congressional committee. They will be forced to answer questions from U.S. lawmakers regarding the specifics of Libra and how it will work. The results of the various testimonies that will be given will go a long way to deciding how the government will react to Libra. President Donald Trump made his position on the matter very clear. He said in a tweet that he is not a fan of cryptocurrencies. Mnuchin also added that he was uneasy with Facebook’s launch of Libra.
Politicians from both sides of the aisle want to have more transparency from Facebook regarding this project. There are major concerns about various aspects of Libra that were not addressed in the white paper that Facebook recently published. It is interesting to note that Facebook will not be the only company involved in the Libra project. Some very big companies like Spotify, Paypal and Uber will also have a stake in it. Facebook will make a profit by supplying the digital wallet that will be used by people to make transactions and store their Libra cryptocurrency. More hearings will be held soon.