Facebook decided to hire a lobbying firm that aims at easing the regulatory pressure on the Libra cryptocurrency project. The information was released by O’Dwyer in a press release on August 26. Facebook Libra has already gathered the attention of many regulatory institutions around the world.
Facebook’s Libra Puts Pressure On Regulators
According to the press release, the social media giant is currently working with FS Vector, a firm that specializes in regulatory compliance, public policy and also business strategy. The goal is to help the financial sector and different companies in the crypto and blockchain industries.
As per documents filed with the U.S. Congress, Facebook retains FS Vector in order for it to work on different matters related to blockchain technology and the policies around it.
Facebook announced that it is planning to launch a cryptocurrency through a project called Libra. The main goal is to help Facebook Messenger and WhatsApp users process fast and cheap transactions around the world.
Due to this reason, the House Financial Services Committee Chair Maxine Waters (D-CA) called for a moratorium and Congressional review of Facebook’s Libra project. Furthermore, other regulators from countries such as the United Kingdom, France, Singapore or Italy have also shared their worries about this project released by Facebook in June this year.
In addition to it, the Federal Reserve chairman Jerome Powell mentioned that there are many serious concerns related to privacy, money laundering, consumer protection and also financial stability. Furthermore, Donald Trump wrote on Twitter that companies such as Facebook that want to offer financial services have to be compliant with banking regulations in the country.
FS Vector partner John Collins is currently leading the Facebook account. He has also worked as vice president of international policy at the American Bankers Association’s international subsidiary, the Bankers Association for Finance and Trade.
One of the main issues around this virtual currency Libra is related to the fact that Facebook will be in control of one of the largest currencies in the world and it could work as an alternative global currency. Facebook has billions of users in many countries and it could reduce the number of fiat currency users around the world.
Now, Facebook needs to have a close relationship with regulators and clarify how it is going to be releasing its cryptocurrency project to the market.
You can know more about the companies working with Facebook’s Libra in our guide about the firms investing in Facebook’s project.
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