Libra: The reasons why Facebook cryptocurrency is a cause for concern in the US and Germany.

Fears that his cryptocurrency Facebook "Threatens" the economic and monetary stability of countries.

Αsome MPs from both camps are expected to "interrogate" her today Facebook regarding its plans to launch its own cryptocurrency, at a time when this plan continues to attract the keen exploratory eyes of regulators and politicians around the world.

Facebook is trying to counter the climate of caution to secure Washington's support after surprising regulators and lawmakers with its June 18 announcement that it hopes to launch a new digital currency, the Libra, in 2020.

It has since faced a barrage of criticism from policymakers and financial regulators inside and outside the country. USA, who fear that the mass adoption of digital currency by the 2,38 billion users of the social media giant could drastically change the financial system.

Critics are outraged that the company has gone so far with its cryptocurrency plans without the extensive input from policymakers. especially when it is already at the forefront of personal data protection issues, as reported by the Athenian News Agency.

The Senate Banking Committee will ask questions to David Marcus, the chief executive of the company responsible for this plan, on a number of issues, from how the Pound could affect global monetary policy as to how customer data is managed.

Marcus, who was president of PayPal from 2012 to 2014, will try to allay concerns by promising that Facebook will not start offering Libra until all regulatory issues have been resolved, according to the text of his speech. posted yesterday. "We know we need to have time to do this properly," Markus is expected to address the House of Representatives Financial Services Committee tomorrow.

Marcus is likely to have an icy response from Democrats, who already believe the company is too big and careless about consumer data. He is also likely to face Republican cautiousness, following concerns voiced by President Donald Trump and Treasury Secretary Steven Mnuchin.

"They have to convince us of very high standards before they can access the US financial system," Mnuchin said yesterday.

Germany: Finance Minister rings the alarm bell for Libra

Ο Γερμανός Finance Minister Olaf Solz said regulators need to ensure that cryptocurrencies, such as Facebook's Libra digital currency, do not threaten financial stability and personal consumer data.

"The issuance of a coin does not belong to a private company because that is the key element of a state's sovereignty," Solz said ahead of the G7 summit in France later this week.

"The euro is and remains the only legal means of payment in the eurozone", said Solts. Berlin is coordinating its efforts internationally with its allies to ensure financial stability, protect consumers and prevent a gateway to money laundering and terrorist financing, he added.

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