Facebook faces more in control of the Congress on the Balance cryptocurrency plan

WASHINGTON (Reuters) – Facebook Inc faces more questioning by US lawmakers on Wednesday over the planned cryptocurrency, after a bruising first bout, when senators from both parties have condemned the project, saying the company had failed to demonstrate that it can be relied on.

FILE IMAGE: Representations of virtual currency are to be displayed on the front of the monitor the logo in this illustration picture the 21 of June, 2019 at the latest. REUTERS/dado Ruvic/Image/File Photo

The social media company is fighting to get Washington on its side, and after it shocked the regulators and the legislators, with the announcement on June 18 that it plans to launch a new digital currency called the Scale by the year 2020.

Since then, it has faced criticism from the lawmakers and financial watchdogs in the country and abroad, who fear for the widespread adoption of the digital currency by Facebook’s 2.38 billion users will be able to upend the financial system.

“I have serious issues with Facebook’s plans to create a digital currency and digital wallets,” Maxine Waters, the chair of the Democratic party-controlled House Financial Services Committee, said in her opening remarks.

“If Facebook’s plan is coming into fruition, the company and its partners to deliver a major economic power, which could destabilize the currency at any time.

Legislators are hearing, David, Mark and the Facebook board of control of the project, was grilled by the Senate Banking Committee on Tuesday about the potential risks posed by the Scale to be in the privacy of your personal data and the protection of consumers and for the purpose of money laundering controls in place.

Senator Sherrod Brown, the top Democrat on the panel, said that the reconciliation plan was “delusional.”

The hearing in the Congress, would prove to be even more stressful.

The panel has circulated the draft legislation, which could kill the project due to the banning of Facebook and other tech companies in the financial services space.

Facebook has been on the defensive in the midst of a backlash about the mis-use of the data by the user, and do not have enough to do in order to prevent Russian interference in the 2016 presidential election.

Marcus, who was president of PayPal from 2012 to 2014, he tried to assuage lawmakers on Tuesday that the pledge does not have to begin with the issue of the Scale of legal concerns have been addressed.

He said that the company had unveiled the project at an early stage, in order to get feedback from all stakeholders and interested parties.

Report by Pete Schroeder, and Anna Irrera; editing by Michele Price, Cynthia Osterman and Bernadette Baum

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