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US Senators Urge Facebook to Discontinue Crypto Wallet Pilot Citing ‘Insufficient’ Ability to Keep Consumers Safe – Regulation Bitcoin News

A gaggle of U.S. senators has requested Facebook CEO Mark Zuckerberg to discontinue his firm’s crypto pockets pilot and commit to not bringing the cryptocurrency Diem to market. “Facebook cannot be trusted to manage a payment system or digital currency when its existing ability to manage risks and keep consumers safe has proven wholly insufficient,” the lawmakers mentioned.

US Senators Urge Facebook to Stop Crypto Wallet Pilot

U.S. Senators Brian Schatz, Sherrod Brown, Richard Blumenthal, Elizabeth Warren, and Tina Smith wrote a letter to Facebook CEO Mark Zuckerberg relating to the corporate’s cryptocurrency venture Tuesday after the social media big launched a pilot for its crypto pockets Novi.

Facebook has chosen the Nasdaq-listed crypto trade Coinbase as its custody associate for the pilot. “Novi users who can participate in the pilot can acquire pax dollar (USDP) through their Novi account, which Novi will hold on deposit with Coinbase Custody. Novi users will then be able to transfer USDP between each other instantaneously,” Coinbase defined.

Citing a number of scandals involving Facebook, the senators wrote:

Given the scope of the scandals surrounding your organization, we write to voice our strongest opposition to Facebook’s revived efforts to launch a cryptocurrency and digital pockets, now branded ‘Diem’ and ‘Novi,’ respectively.

The letter explains that Facebook has mentioned on many events that it could not launch a digital foreign money absent federal monetary regulators’ approval.

The lawmakers famous that “Despite these assurances, Facebook is once again pursuing digital currency plans on an aggressive timeline and has already launched a pilot for payments infrastructure network, even though these plans are incompatible with the actual financial regulatory landscape — not only for Diem specifically, but also for stablecoins in general.”

The letter additionally factors out that “In addition to the risks products like Diem pose to financial stability, you have not offered a satisfactory explanation for how Diem will prevent illicit financial flows and other criminal activity.”

“Facebook‘s decision to pursue a digital currency and payments network is just one more example of the company ‘moving fast and breaking things’ (and in too many cases, misleading Congress in order to do so). Time and again, Facebook has made conscious business decisions to continue with actions that have harmed its users and the broader society,” the letter continues.

The senators additional wrote:

Facebook can’t be trusted to handle a fee system or digital foreign money when its current capacity to handle dangers and hold shoppers secure has confirmed wholly inadequate.

“We urge you to immediately discontinue your Novi pilot and to commit that you will not bring Diem to market,” the lawmakers concluded.

What do you consider U.S. lawmakers making an attempt to cease Facebook’s crypto pockets pilot? Do you agree that Facebook can’t be trusted? Let us know within the feedback part under.

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