US senators ask Facebook to set the Crypto Wallet Pilot Project and refer to inadequate ability to ensure the security of consumers-regulation
US senators ask Facebook to set the Crypto Wallet Pilot Project and refer to inadequate ability to ensure the security of consumers-regulation
A group of US senators asked Facebook CEO Mark Zuckerberg to hire the crypto wallet pilot project of his company and to commit itself not to launch the cryptocurrency DIEM. "Facebook cannot be trusted that it has managed a payment system or a digital currency if its existing ability to manage risks and ensure the security of consumers has proven to be completely inadequate," said the legislator.
US senators ask Facebook to stop the crypto wallet pilot
The US senators Brian Schatz, Sherrod Brown, Richard Blumenthal, Elizabeth Warren and Tina Smith wrote a letter to Facebook CEO Mark Zuckerberg on Tuesday with regard to the company's cryptocurrency project after the social media giant had started a pilot project for its crypto wallet Novi.
Facebook has the crypto exchange Coinbase noted on the Nasdaq as a Custody partner for the pilot . "Novi users who can take part in the pilot project can acquire Pax-Dollar (USDP) via their Novi account, which Novi has deposited with Coinbase Custody.
Citing several Facebook scandals wrote the senators:
In view of the scandal extent of your company, we write in order to express our sharpest opposition to the revived efforts of Facebook, to launch a cryptocurrency and a digital wallet that now operate under the brands "Diem" or "Novi".
The letter explains that Facebook said on many occasions that it would not bring a digital currency onto the market without the consent of the federal finance supervisory authorities.
The legislator stated: "Despite these assurances, Facebook again pursues plans for digital currencies in an aggressive schedule and has already launched a pilot project for the payment infrastructure network, although these plans are not compatible with the actual financial supervisory landscape - not only for DIEM." , but also for stable coins in general. “
The letter also points out that “in addition to the risks that represent products such as Diem for financial stability, they have not provided a satisfactory explanation for how the illegal financial flows and other criminal activities prevent.”
"" The decision of Facebook to pursue a digital currency and payment network is just another example of the fact that the company "quickly processes and breaks things" (and in many cases leads the congress to be misleading). Facebook has repeatedly made conscious business decisions to continue actions that have harmed its users and society as a whole, "the letter continues.
The senators continued to write:
Facebook cannot be trusted to manage a payment system or a digital currency if its existing ability to manage risks and ensure the security of consumers has proven to be completely inadequate.
"We urgently ask you to stop your Novi pilot immediately and to commit yourself not to bring Diem onto the market," concluded the legislator.
What do you think of US legislators who try to stop the crypto wallet pilot project from Facebook? Do you agree that Facebook is not trustworthy? Let us know in the comment area below.
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