Facebook endured a second day of Congress criticism for its plan to create a digital currencyDemand for the Democrats of the House of Representatives was asked to reduce the scope of the project and threaten to approve a law that would prevent technology companies from participating in the banking system.
The huge market power of the social network and its history of scandals, fines and privacy violations were questioned on Wednesday at a hearing of the Financial Services Commission of the lower house. Legislators from both parties insisted they can not rely on the gigantic social network.
"I think you are now quite low in the trust spectrum and it is understandable"Democratic representative Vicente Gonzalez told David Marcus, the Facebook executive who runs the project. It was the second consecutive day in which lawmakers made it hard questions.
Among his concerns is the risk that the new currency, which would be called Libra, could be used for illicit activities such as money laundering or drug trafficking. Legislators are also concerned that the huge reserve created with money used to buy the Pound could impose the Federal Reserve and destabilize the financial system, and that customers are affected if the pound presents losses.
The leader of the commission, the Democratic representative Maxine Waters, He asked Facebook to suspend their plans for the new digital currency until the regulators and legislators have the opportunity to revise it thoroughly. He has repeated this petition to Marcus.
Waters weighed an idea of a law that would prohibit large technology companies like Facebook, Google, Amazon and Apple from becoming financial institutions Certified or authorized Americans and, therefore, are able to offer banking services and, specifically, to establish their digital currency.
Facebook, heading its more than 2,000 million users in the world, "apparently tries to create a new global financial system that competes with the US dollar"Waters said.
The criticisms of Congress made the Facebook plan even darkerAfter the negative statements and expressions of concern of two of the most powerful financial regulators, the president of the Fed Jerome Powell and the secretary of the Treasury, Steven Mnuchin, As well as from President Donald Trump himself.
Marcus said the plan would give access to online commerce to millions of people in the world who do not have access to bank accountsIt would be cheaper to send money across borders.
The official did not agree to suspend the plan.
"We will take the necessary time to do it well"He affirmed.