Waters is the chair of the powerful House Financial Services Committee, and she has been instrumental in calling out Facebook for the threats related to its crypto offering. She oversaw a hearing in which she asked for clarifications from the company on the same. As the leader of the lawmaker delegation visiting Switzerland, she is expected to talk about Facebook as well.
Facebook in on the Agenda
The group of six members will meet Adrian Lobsiger, the Swiss Federal Data Protection and Information Commissioner, revealed NZZ am Sonntag. Facebook’s non-profit The Libra Association, which will be responsible for managing the blockchain and cryptocurrency developed by the company, are located in Geneva, Switzerland, making this visit even more important.
For the social media giant, the meeting’s outcome could be worth a fortune. Waters has actively and publicly disgraced Facebook. Last month, she even compared the company to Equifax and Wells Fargo, owing to their numerous scandals related to user data and privacy. With a 2+ billion userbase and a cryptocurrency, Facebook could become an extremely powerful financial entity with a history of data and privacy leaks.
What Does Facebook Say?
Committee Democrats want to draft new legislation that would prevent the company from developing the coin any further before a proper vetting is conducted. Libra’s lead David Marcus has assured the lawmakers that the company will assist the lawmakers in addressing all their concerns. However, he hasn’t agreed to a formal moratorium.
Libra was announced in June this year and met heavy backlash from regulators across the world. Even US President Donald Trump criticized Facebook’s attempt at creating a digital currency and asked the company to get a banking charter if it wants to work like a bank. Extensive government crackdown and ban on digital currency also means that Facebook will not be able to launch Libra in India, its larger market.