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The US Congress officially requested Facebook to suspend the Libra Coin program, saying it aims to compete with the US dollar.

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Members said: “These products seem to bring a new global financial system to the relevant companies. The system is headquartered outside of the United States, and is designed to compete with the US dollar.
Tencent Technology News The US social network company Facebook announced the plan to create a new digital currency Libra, which triggered a global skepticism. A US member of parliament asked Facebook to suspend the plan and hold a hearing first. According to the latest news from foreign media, on Tuesday, the Democratic Party members of the US House of Representatives Financial Services Committee formally requested Facebook to suspend its digital currency plan, which also means that this new project has encountered new setbacks.
According to foreign media reports, on Tuesday, several members of the US House of Representatives Financial Committee (Maxine Waters, Carolyn Maloney, Lacy Clay, Al Green, Stephen Lynch) sent a letter to the top of Facebook, asking the company to suspend the Libra coin project until the US government Regulators and Congress have time to consider a variety of related issues, including the risk of hacking, data security, and global financial security.
These lawmakers wrote: “We wrote to Facebook and its partners to immediately suspend any action on the Libracoin program, including digital currency and Facebook’s proposed digital wallet.”
Members said: “These products seem to bring a new global financial system to the relevant companies. The system is headquartered outside of the United States, and is designed to compete with the US dollar.
The letter reads: “This not only gives Facebook more than 2 billion users, but also brings serious privacy, transactions, national security and monetary policy concerns to investors, consumers and the global economy.”
Not long ago, Facebook announced plans to create a digital currency, Libra, which led the early development of the product, but the Libraco plan will give control to an independent body of more than 100 member companies. . Nearly 30 partner companies have joined the company, including MasterCard, Visa, Uber, Spotify and Coinbase.
Libra coins belong to the cryptocurrency, and transaction information is recorded in the underlying blockchain network. However, Libra and Bitcoin are completely different. Users need legal currency to purchase transactions. Libra coins will also have physical financial assets as their support. A stable digital currency.
According to foreign media reports, Facebook’s Libra currency vision is to create a digital currency without borders, allowing users to easily and cheaply send money and make online payments.
Facebook plans to integrate Libra coins into instant messaging applications such as WhatsApp and Messenger, and create a digital wallet service called Calibra for consumers. Facebook will also seek new profits through related Internet financial services.
But the outside world quickly became suspicious of the Facebook project, in part because of its bad scandals in the past.
The company has experienced one after another scandal crisis in the past two years – from the hacking of tens of millions of user data by Cambridge Analytical, to the role of the social network in spreading hate speech and triggering social violence.
In June of this year, Maxine Waters of the above-mentioned congressmen called for a time to suspend the plan for Libra, asking Facebook to accept the hearing of Congress first. But this proposal was rejected by Facebook.
A spokesperson for Facebook rejected the idea at the time. He said: “As this process progresses, we look forward to answering the questions of parliamentarians.”
Facebook’s Libra coin plan has triggered concerns from government regulators and central banks around the world that it will affect the stability of global financial markets. Officials in many countries said that they would conduct a rigorous review of the Libra currency and would not easily give a green light.
As everyone knows, the vast majority of Facebook’s revenue comes from online advertising. As the company has been criticized for publicly collecting personal privacy, Facebook hopes to expand revenue through other channels and reduce the proportion of online advertising. In the future, if the Libra Coin program is implemented smoothly, Facebook will expand its revenue through related payments, transactions, and e-commerce. (Tencent Technology Review / Cheng Hao)

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