While speaking at an interview at the Cannes Lions International Festival of Creativity in France, Sandberg said that Libra is a “long way from launch.” Policymakers already want to scrutinize the cryptocurrency offering, and the US lawmakers are planning to organize a hearing in July. Facebook announced on Tuesday that it will launch a new cryptocurrency, more specifically a stablecoin, that will usher the company into the global financial system. The stablecoin will be backed by a basket of government-backed currencies and securities.
Acknowledging the Problems With Libra
Sandberg also noted that regulators have concerns with the cryptocurrency. The company is already meeting with the lawmaker, and she acknowledges that they have a lot of work to do. Tuesday’s announcement of Libra was just to tell the world what the company has planned for the future. The announcement also ensures that people jump into the project and help them complete it.
The Senate Banking Committee announced on Wednesday that it had scheduled a July 17 hearing focused on examining Libra cryptocurrency by Facebook. The statement specifically mentions data privacy considerations as a subject of examination.
Libra Has Roadblocks Ahead
The Libra project was kept a secret for over a year and met with criticism and suspicious from politicians in Europe as well as the US. These politicians voiced their concerns about regulatory oversight and privacy. The French finance minister also highlighted the use of the cryptocurrency for money laundering and terrorism finance.
Democratic Senator Sherrod Brown is amongst the lawmakers in the US who are skeptical about Facebook’s handling of consumers’ financial data. The company has faced numerous scandals in the past year related to user privacy and lethargic protections at the company.
Facebook said that Libra isn’t expected to launch Libra until next year. Before that, the company will have to move through a patchwork of regulations.