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Why do US lawmakers want to examine Facebook's Libra crypto project?


Simon Mugo

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Maxine Waters, the head of the House Financial Services Committee has called on Facebook (NASDAQ:FB) to stop the development of its Libra Cryptocurrency until the committee holds a hearing on the project.

Ms. Waters said that Facebook has been known to abuse user data and that it has access to the personal data of billions of people, which puts the social media giant in a powerful position to exploit that data.

Patrick McHenry, a Republican congressman echoed similar views saying that the existing regulations could not protect the interests of investors and consumers who could be exposed to the cryptocurrency.

The move is not surprising given Facebook’s past practices where it sold private user information to third parties and was accused of letting malicious entities use its data to interfere with the 2016 US presidential elections.

Facebook responded that it was ready to answer the lawmakers’ questions as the process continues. The social media company has been the target of regulators in different countries including the European Union regarding its handling of personal user data.

Lawmakers are likely to continue questioning Facebook’s motives and practices for the foreseeable future until the company proves that it has taken adequate measures to protect the data it collects from users.

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