U.S Lawmakers – Facebook Can’t Manage Cryptocurrency

U.S. Democratic senators have criticized Facebook for launching a digital wallet and released an open letter. A group of U.S. lawmakers said Facebook could not manage Cryptocurrency. They immediately called on the social media giant to stop launching the cryptocurrency wallet, the pilot version of Novi, found on Tuesday.

The open letter states that Facebook’s plans are incompatible with the actual financial regulatory landscape. The explanation says that it has become difficult for Facebook to protect customer data and manage risks. Such a company can’t have a digital currency management license.

A Novi spokesman said the company would respond to the committee letter. It is noteworthy that Facebook launched the cryptocurrency project in June 2019 as part of an effort to expand e-commerce and global payments. However, the project immediately received harsh criticism from international policymakers. They worried that the move could undermine their control over the monetary system, increasing the risk of committing a crime and the likelihood of harm to the consumer.

The project received a redesign in December to obtain a regulatory permit. With the renewed effort, its volume has been further reduced with the support of the dollar on the digital coin.

Furthermore, Frances Haugen delivered many chronicles that showed the company had failed to assure young clients. According to Frances, the company’s management knows how to make Facebook and Instagram more secure, though it does not make the necessary changes as they put financial gains above people’s safety.

However, Responding to the criticism, Facebook CEO Mark Zuckerberg noted that the company has no interest in deliberately using customer data for profit.

Conclusion

Facebook Digital Wallet NOVI allows users to send and receive money securely, at no extra charge. The company is partnering with Coinbase to become a partner in the fund ownership platform. Hence, the primary purpose of the NOVI pilot is to test the effectiveness of the forum.

It is noteworthy that the wallet was not only dissatisfied with the senators. Moreover, Visa, PayPal, Mastercard left the project a few months after its initial launch.

Senators and consumers doubt that the company will be able to handle such a responsible business as Cryptocurrency. This is against the background of numerous violations in the direction in which the company has been operating for years.

Critics say Facebook’s existing defence capabilities are not enough to build trust. They are urging the company to cancel the project. On the one hand, the criticism of the critics is not surprising given the recent scandals and fines against Facebook. We will probably find out Facebook’s position regarding the open letter very soon.