As we saw in June, Facebook’s less-than-stellar reputation prompted an investigation from the US government over their proposed cryptocurrency, Libra.
In an update given August 23rd on the United States House of Representatives’ Financial Services Committee’s priorities for fall of 2019, it was announced that the committee will continue to deliberate over the future of the theorized token.
The Financial Services Committee plans to hear testimonies from a variety of government officials and regulators, specifically listing Treasury Secretary Mnuchin, Consumer Financial Protection Bureau Director Kraninger, Federal Housing Finance Agency Director Calabria, and Federal Reserve Vice Chairman Quarles. It is likely that more voices will be heard by the committee as the fate of Libra is decided.
Representative Maxine Waters, chair of the committee, also spoke on Libra in June, requesting the company halt any development of Libra until sufficient review is done by legislators and regulators alike.
The committee’s decision to continue research on Libra’s potential impacts could not have come at a worse time for Facebook’s crypto love child. As of now, many of Libra’s partner companies are considering abandoning the project. The original declaration of interest was not legally binding, meaning any company supporting the token can relinquish support at any time.
Regardless of the decision reached by the Financial Services Committee, the impact Libra’s announcement on the world has already been measured. Not only did the announcement increase volatility of Bitcoin prices, but the venture also inspired those on the international stage. Huawei CEO Ren Zhengfei took the opportunity to publicly call for a Chinese national cryptocurrency, openly inspired by the Libra project.
The announcement is unlikely to falter Mark Zuckerberg, however. In a July statement on quarterly earning, Zuckerberg declared that he would wait however long it takes to convince regulators on the matter.
Assuming the project is promptly approved by governing bodies, Libra is slated for release in 2020.