The cryptocurrency that had been scheduled for next year's official launch has already been receiving opposition from the United States government as well as various central banks and officials from Europe with concerns of data privacy that can be linked to Facebook's latest scandal cases alongside fears for money laundering and consumer vulnerability.
Treasury Secretary Steven Mnuchin, who is now in France at a meeting with G-7 finance officials, said on Thursday the other nations in the bloc have "very significant" worries about Libra. "This is indeed a national security issue".
Mnuchin also said USA regulators held multiple meetings with representatives of Facebook and expressed their concerns.
Libra is believed to have many problems related to the protection of personal information and the fight against money laundering, sources familiar with the matter said.
Democratic US Representative Carolyn Maloney pushed Marcus to commit to a Libra pilot program that had one million users and was overseen by US financial regulators, including the Federal Reserve.
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Mr Marcus told the hearing: "The way we've built this is to separate social and financial data because we've heard loud and clear that they don't want those two types of data streams connected, so this is the way the system is designed". At least that's what U.S. Democratic Congressman Dril (sorry, Congressman Brad Sherman) of California said today at a House Committee on Financial Services Hearing in Washington.
Since then it has faced criticism from policymakers and financial watchdogs at home and overseas who fear widespread adoption of the digital currency by the social media giant's 2.38 billion users could upend the financial system. Many lawmakers expressed disbelief that Facebook could be trusted with such responsibility.
Marcus said the plan would open low-priced online commerce to millions of people around the world who lack access to bank accounts and would make it cheaper to send money across borders.
Facebook repeatedly stressed it would work with regulators to ensure users' privacy, but as of Tuesday, the Swiss regulatory body responsible for its regulation had not heard from the company, it said. Marcus also said that Libra is not meant to compete with bank accounts, and that the digital currency is not an attempt to avoid financial oversight.
"Instead of cleaning up your house, you are launching a new business model". It has said it won't launch Libra until all of the regulatory issues are addressed. "This may do more to endanger America than even that". The tech giant announced in June that it would roll out a new digital currency - called Libra - from 2020, which could be used for online purchases or by people who have to transfer money across borders and now pay high fees to do so.
In a series of tweets on July 11, President Donald Trump also attacked cryptocurrencies, saying that they are used in facilitating "unlawful behavior, including drug trade".