The US Congress has summoned Facebook CEO Mark Zuckerberg before the US House to testify regarding Facebook’s proposed launch of its own cryptocurrency Libra.
According to reports, Facebook’s Chief Operating Officer (COO), Sheryl Sandberg, is scheduled to appear before the U.S. House Committee later this month to discuss the proposed launch of Libra. However, the US Congress has put forth a condition for the meeting that needs to be met before Sandberg’s appearance before the US House – Mark Zuckerberg has to agree to testify before the US House, before January 2020.
According to an earlier report, the Facebook team earlier negotiated with the U.S. House Financial Services Committee to allow its COO, Sheryl Sandberg, to appear before the committee before the end of October 2019, to discuss the social media giant’s cryptocurrency plans.
Sandberg joins David Marcus, Libra co-creator and Head of Calibra, as the second Facebook representative to appear before the U.S. House Committee to answer questions concerning the Libra cryptocurrency.
According to recent reports, the date for the hearing has been fixed for October 29, 2019. However, there is a condition, which was not stated initially. Before the hearing takes place on October 29, Facebook CEO, Mark Zuckerberg, would also have to agree to testify before the House, before January 2020.
It is not a secret now that the head of the U.S. House Financial Services Committee, Maxine Waters, has been very critical of Facebook’s cryptocurrency since the Libra whitepaper was released. In June 2019, Waters requested a moratorium on the Libra project until regulators examined the risks involved. Later in August 2019, Waters stated concerns about allowing a tech company like Facebook to create an alternative global currency.
Facebook had earlier announced that it will launch Libra at some point in 2020. However, it has faced criticism from financial policymakers and regulators since being unveiled earlier this year.
Through its Calibra subsidiary, Facebook has teamed up with some of the world’s biggest companies and financial institutions to develop and roll out Libra, including PayPal, Mastercard, and Visa. This collective of billion-dollar corporations, combined with Facebook’s vast reach around the world, is why regulators view it as such a threat to the established order.
However, there are reports that Paypal, an online payments platform, could be leaving the Libra project. According to reports, the company is worried that the social media giant has not properly addressed concerns from regulatory bodies and governments.
Interestingly, Paypal is not the only company that has expressed concern about the Libra project. Other online payment companies such as Visa, Mastercard, and Stripe, have also expressed worry at the level of regulatory backlash on the Libra project.