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
WASHINGTON (Reuters) – Facebook Inc. will face more questions Thursday as the U.S. lawmakers about 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.
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.
On Tuesday, the Facebook executive overseeing the project, David Mark was grilled by the Senate Banking Committee on 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.”
Facebook has been on the defensive against an impact over the incorrect 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, will testify before Congress again on Wednesday, this time for the Democrat-controlled House Financial Services Committee.
That hearing was going to be able to turn out 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.
By Marcus on Tuesday, was trying to appease legislators by promising not to begin with the issue of the Scale of legal concerns have been addressed. He also said that the company unveiled the project at an early stage, in order to get feedback from all stakeholders and interested parties.
Report by Pete Schroeder; edited by Michelle Price and Cynthia Osterman