Facebook on Tuesday announced its Plans to Create a New Cryptocurrency called Libra, saying it hopes to make Transferring Money as easy as sending a Text Message.
Calibra, a New Subsidiary, rolled out the Alternative Financial System with a Website and White Paper in an effort to get the Cryptocurrency up and running by 2020. "Libra's mission is to enable a simple global currency and financial infrastructure that empowers billions of people," the White Paper reads.
The New Digital-Native Financial system is certain to draw Scrutiny from Lawmakers and Regulators who have been criticizing Facebook over its handling of Data Privacy and Potential Antitrust Issues. But Executives are assuring Reporters that none of the Financial Customer Data collected by Calibra will be Shared with any other Facebook Subsidiary.
"Your social data on Facebook is kept separate from Calibra data. This is not about improving ad targeting. We're trying to draw a bright red line." Kevin Weil, Calibra's Vice President of Product said.
Financial Regulators have showed Increasing Interest in Regulating Cryptocurrencies, saying they leave the door Open to Large-scale Fraud and potentially Criminal Transactions.
Libra's Blockchain Technology will allow Users to hold Addresses that are Not Linked to their Real-World Identity. The Cryptocurrency will also be backed by Government Currencies like the Dollar to make it more "stable" than other Cryptocurrencies like Bitcoin.
The effort will be led by the Libra Association, a Nonprofit in Switzerland that will Operate separately from Facebook. Facebook will be one of Dozens of Companies with Voting Power in the Project.
As of Tuesday, Libra is backed by 28 diverse Companies including: Coinbase, Mastercard, Spotify, Uber, Vodafone, and Women's World Banking. Each of the Partners are expected to Invest at least $10 Million in the Cryptocurrency.
Libra will be available in Facebook's Messaging Services, Messenger and WhatsApp, as well as a Separate App.
House Financial Services Committee Chairwoman Maxine Waters (D-CA, 43rd District) called on Facebook to Halt its New Cryptocurrency project until Regulators and Congress weigh in on the Endeavor.
In a Statement, Waters said that the Social media Giant should back away from the Financial Services Industry because of the Company's repeated Privacy Breaches, Alleged Violation of Consumer Protection Laws, and a String of other Controversies involving User data. "With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users. 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." Waters said in a Tuesday Statement.
Rep. Patrick McHenry (R-NC, 10th District), Ranking Member on the Financial Services Panel, asked Waters in a Tuesday Letter to Hold a Hearing on Project Libra and "its potential unprecedented impact on the global financial system."
Waters also wants Facebook Executives to Appear before her Panel to discuss the Project.
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