Senators to Urge Companies Not to Take Part in Libra

Two US senators called on major payment companies to reconsider their plans to participate in the digital currency project Facebook, Bloomberg reports.

According to Sherrod Brown and Brian Schatz, Libra carries risks not only for global financial systems, but also for the business of payment companies. This was stated by lawmakers in an appeal to Visa, Mastercard and Stripe.

Congress, financial regulators, and potential Libra Association member companies have struggled to get sufficient details from Facebook about risks that Libra may pose, including facilitating criminal and terrorist financing, destabilizing the global financial system, interfering with monetary policy, or exposing consumers to risks currently limited to accredited investors,” the two senators said in statement regarding the letter.

US Senators

They urged companies to “think carefully” how they would deal with these risks, given that Facebook had not shown a serious attitude to them.

Brown and Schatz recalled that the social network is now facing such serious problems as violation of data confidentiality, the spread of misinformation, interference with elections, discrimination and fraud. At the same time, Facebook did not demonstrate the ability to control its mistakes, say senators.

You should be concerned that any weaknesses in Facebook’s risk management systems will become weaknesses in your systems that you may not be able to effectively mitigate.

US Senators

Visa, Mastercard, PayPal and Stripe, which became partners of the Libra Association Visa, are hesitant to formally join the Facebook digital currency project due to regulatory risks.