According to Financial News, the Digital, Culture, Media and Sport Committee of the House of Commons of the British Parliament wants to study Facebook's cryptocurrency.
The committee fears that, after the launch of its stablecoin, the U.S. tech giant will acquire even more power than it already has.
In addition, the committee's chairman, Damian Collins, believes that Facebook may not be able to properly protect its users' financial information. This is a concern that is also shared by most regulators around the world due to the fact that the social network has been involved in several scandals in the past involving its users' data, for example, last year's Cambridge Analytica data leak scandal.
Collins led the investigation about the scandal.
According to him:
"If we’re going to have this payment system created by Facebook that exists within a Facebook walled garden, which no one really has access to or can question, then our concern has got to be that this system is going to be open to massive fraud."
Michel Rauchs, lead cryptocurrency researched at the University of Cambridge, believes that Libra Association might become "one of the largest funds in the world" which, theoretically, could grant it enough power to "be able to exert enormous influence over national governments."
The first hearings on Libra were held last week in the U.S. Congress. During these hearings, David Marcus, the director of the Libra project, tried to answer all the questions he was asked, however, he was quite ambiguous and failed to give a satisfactory answer to some of them.
The crypto community is paying special attention to these hearings, since their results could affect the crypto industry as a whole.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.