Washington skeptical about Facebook's plans for a crypto empire

Facebook bosses have spent years in their workshops tinkering with a new cryptocurrency and digital wallet. The project is finally ready.

The next step is to convince politicians in Washington to officially launch the new digital currency.

Unfortunately, Washington is skeptical of Facebook’s latest push. At issue is the revival of Libra and Calibra – now renamed Diem and Nova.

Leading analysts and lawyers are demanding that Facebook address privacy and other concerns. Because of those concerns, there was criticism of the first attempt to launch the digital currency.

Ahead of the second attempt to launch a new cryptocurrency, regulators and lawyers have warned of the “growing danger” that cryptocurrencies can trigger economic instability. And of the impact on workers’ paychecks.

It’s deeply troubling that Facebook wants to launch the currency at this time

– Says Alyssa James, chairwoman of the U.S. Senate Committee on Banking, Housing and Urban Affairs.

She pointed out that the new digital currency is designed to protect the interests of Facebook executives. She added:

‘It’s only good for them and that’s all that matters.

A boon for the developing world

Facebook has vehemently opposed these views. And has touted digital currency as:

  • Cure for underserved communities
  • Cheap solution for cross-border transactions
  • Low-cost global payment service

Facebook believes the Novi-Wallet digital currency project is a boon for the developing world.

According to David Marcus, head of Facebook Financial, the Novi project is “ready for market now.”

It is unreasonable to delay the deployment of cheaper and more accessible cryptocurrencies.

Major concerns ahead of launch

The digital wallet project has been delayed since its official unveiling in 2019, and chances are it will be nocwill be delayed. Why? Because of strong concerns about the privacy and security of Facebook users’ financial data.

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In addition to Facebook’s Novi project, U.S. lawmakers and financial regulators say crypto:

  • threatens economies around the world
  • Is being used for fraud and illegal money laundering

There are also competition concerns. Facebook’s digital currency is likely to affect other global financial markets.

To allay those fears, David Marcus is now traveling to Washington to directly convince policymakers about the Novi digital wallet.

He expects to meet with lawmakers, financial regulators and other key stakeholders. And he will present Facebook’s plans for its digital project.

His main goal is to get these officials to trust the social media giant to conduct a transparent process. Marcus said:

We have a lot to prove to gain people’s trust.