Although Facebook shared plans for a Swiss non-profit called the Libra Association, which will manage its cryptocurrency’s reserves and network, the social media giant hasn’t provided many details about the governing body or Libra itself. Will Libra coins trade for $1 apiece? What happens when a Facebook account gets hacked? What if there’s a default on Libra’s underlying reserves? Many specifics are still to be determined—or studied.
Facebook has portrayed its vague approach as a collaborative one which might encourage input from other members of the Libra Association, but it’s also given lawmakers cause for concern. Already US congresswoman Maxine Waters, a Democrat from California, has called for a moratorium on Libra’s development, and on July 2, dozens of consumer groups joined her plea, sending a letter to US regulatory agencies to express their concerns.
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