(BlockBar) The U.S. Congress has sent a letter to Facebook to stop Libre, but Facebook officials have declared “Libra will not be abandoned”.
Because Facebook’s encrypted currency, Libra, has become a “rival” to U.S. monetary policy and the dollar itself, the Congress has now formally urged Mark Zuckerberg to stop developing his encryption program. Zuckerberg will now confront the U.S. government head-on and pave the way for encrypted currency legislation. Facebook is paying a huge price in order to build a new financial arena from the rigid regulations.
Mark Zuckerberg, with a huge pool of money and strong teams of lawyer, is bearing heavy losses for the industry as a whole. As a lawyer said, “For years, encrypted money has been in the rising trend, but now Libra may end this phase. Now, we are facing serious problems, and Facebook is the only answer. When Facebook deals with regulators and governments, Bitcoin and other encrypted currencies will grow relatively freely.
Despite tough rhetoric of parliamentary, Zuckerberg is unlikely to stop developing Libra. In response to the letter, Facebook said: “We look forward to working with members of Parliament as the process moves forward, including answering their questions at the upcoming hearings of the House Financial Services Committee and the Senate Banking Committee.” In other words, Zuckerberg is willing to work with regulators, but he will not give in.
The first motivation of Zuckerberg is simple: Facebook will extract huge amounts of comprehensive financial data from Libra. Although Facebook says the Libra Association is de-centralized, node operators like Facebook will have access to transaction data. Facebook’s digital wallet, Calibra, will also share data with Facebook under certain conditions. Even if Calibra does not associate personal transactions with their Facebook profile, Facebook can access to aggregated financial data. With 2.4 billion users’ private information, Libra is a powerful monetization tool. Besides, Zuckerberg’s against the government’s letter is not just about making money. He is expanding Facebook’s control over the most private area of people’s lives: money.
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