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Lawmaker Calls For Moratorium On Facebook Crypto

Facebook is facing more opposition regarding its cryptocurrency, with Congresswoman Maxine Waters (D-CA), chairwoman of the House Financial Services Committee, calling for a moratorium on the digital currency.

“Facebook has data on billions of people and has repeatedly shown a disregard for the protection and careful use of this data. It has also exposed Americans to malicious and fake accounts from bad actors, including Russian intelligence and transnational traffickers,” she said in an emailed statement. “Facebook has also been fined large sums and remains under a Federal Trade Commission consent order for deceiving consumers and failing to keep consumer data private, and has also been sued by the government for violating fair housing laws on its advertising platform.”

“With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users,” she continued. “The cryptocurrency market currently lacks a clear regulatory framework to provide strong protections for investors, consumers, and the economy. Regulators should see this as a wake-up call to get serious about the privacy and national security concerns, cybersecurity risks, and trading risks that are posed by cryptocurrencies. Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action. Facebook executives should also come before the Committee to provide testimony on these issues.”

Earlier this week it was revealed that some in the blockchain industry are reluctant to join the GlobalCoin project, given that users won’t have control over their digital identities. And economist Nouriel Roubini has accused the coin of not being a true crypto.

“It has nothing to do with blockchain. Fully private, controlled, centralized, verified and authorized by a small number of permissioned nodes. So, what is crypto or blockchain about it? None,” he said in an interview.

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