Dozens of Consumer Groups Lobby Congress to Stop Facebook’s Libra

Although announced just a few weeks ago, Facebook’s planned cryptocurrency is already receiving significant pushback. Consumer advocacy groups are now making their opposition heard, penning a letter outlining their grievances against the Libra and demanding that its plans be halted.

Consumer Advocacy Groups Take Action

In a letter sent to regulators and congressional committees, the coalition requests that a moratorium be placed on the Libra until fundamental questions are addressed. These questions are listed in the letter itself, touching on topics relating to governance, national sovereignty, law enforcement, consumer protection, privacy, and anti-competitive practices. The letter reads that the “risks posed by Facebook’s proposal are too great to allow.” “We have too much recent experience with insufficiently regulated financial markets spinning out of control to let this happen again,” the letter concludes. In total, 33 organizations have signed onto the letter including groups like the Center for Digital Democracy, the Economic Policy Institute, and Public Citizen.

Others Express Concern

The letter comes at a time when Facebook has been increasingly feeling squeezed by regulators over its cryptocurrency proposal. In the wake of the Libra announcement, France’s central bank governor even called on other G7 nations to establish a ‘cryptocurrency task force.’ Other central banks have expressed similar doubts, but so far none have outright denounced the Libra. The letter is thus the first strongly-worded denunciation of the project and the first to formally call for its shut-down. Given Facebook’s persistent controversies over its privacy commitments, the Libra will inevitably be a tough sell to a public already skeptical of Facebook’s data-mining operations. Facebook has made no commitments to cease these same operations for the Libra, arguing that data collection is necessary for its AI-related developments. So far, no Facebook representatives have commented on the letter. A Facebook executive is expected to testify in Congress on the matter later this month. Do you believe the US government will put a hold on Facebook’s Libra plans until these concerns are cleared up? Do you believe the Libra will still release in 2020? Let us know your thoughts below.