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Facebook execs receive another letter calling for a halt in Libra development

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Another open letter is reaching the desk of Facebook execs as multiple lawmakers call for a moratorium of Libra development. Multiple committee chairs signed the letter, which was sent today.

After Chair of the House Financial Services Committee, U.S. Rep. Maxine Waters called for a moratorium on the development of Facebook’s Libra, other members of Congress are joining her. Five members, including Waters, have submitted a letter to Facebook founder and CEO Mark Zuckerberg, calling for a halt of development.

The letter includes a number of questions that the signatories say need answers before Libra can proceed, including the following:

“The plan for Libra makes explicit and implicit promises to consumers, such as the claim that value will remain stable, but what is to stop the Libra Association from changing policy in order to, for example, degrade the value of Libra or to impose a micro tax on every Libra transaction?”

Facebook’s congressional hearings on Libra are currently scheduled for July 16 and July 17. 

Chairwoman Maxine Waters, who announced the Libra hearing on July 17 by The United States House Financial Services Committee, called for a moratorium on Libra development as far back as June 18, saying: 

“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action.”

Polychain Capital CEO Olaf Carlson-Wee commented on Facebook’s issues with content policing at the Consensus 2019 conference in May, as previously reported by Cointelegraph. To avoid any problems in this area, Carlson-Wee recommended that the social media giant relinquish control of the blockchain hosting its virtual currency, saying:

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“I think given all the problems that Facebook has had with policing their platform and things like that, I think that the strategic move for Facebook would actually be to build public infrastructure. […] The people that made the internet aren’t responsible for everything that’s said on the internet.”

Zuckerberg, Sandberg and Marcus have yet to respond to the letter. Indeed Zuckerberg has mostly remained silent when Congress previously mailed him questions on Libra – first in May when Congress asked about the possibility of a Facebook crypto after outlets first reported rumors of the coin, and again when Waters called for the initial moratorium last month.