Ever since Facebook stepped into the crypto world with its Libra cryptocurrency, more often than not, it has suffered from several controversies. The most recent, which could put its future in jeopardy again, is the US Treasury’s serious concern about Libra and other cryptocurrencies.
In a press conference, US Treasury Secretary Steven Mnuchin has suggested that cryptocurrencies, including Facebook’s Libra, pose a “national security issue” and are likely to be used for illegal activities such as money laundering amongst other.
Following the US Treasury’s concerns related to how cryptocurrency impacts in a negative way, Facebook has suggested that it speculated critical feedback and wishes to discuss the issue. Hence, Facebook Libra was launched a year prior to the original time of launch.
David Marcus, who heads Facebook’s Callibra project, will testify before the House Financial Services Committee, with Facebook’s Libra being the topic of concern.
Problems Associated With Cryptocurrencies
Concerns arise as cryptocurrencies such as Bitcoin have previously been used for malicious activities such as cybercrime, tax evasion, extortion, ransomware, illicit drugs, and even human trafficking.
To recall, a California-based man used to sell drugs on the dark web in exchange for bitcoins, and news like these just don’t stop.
For those who have forgotten, Donald Trump recently tweeted that he doesn’t have a liking for cryptocurrencies and how wants that it should be regulated.
While he may go crazy-tweeting at times, Trump’s concern over how cryptocurrencies can be negatively used is quite legitimate and we do need some regulations so that such activities do not take place.
Apart from various people questioning cryptocurrencies, India even banned the use of it, causing more trouble for the virtual currency world.
It remains to be seen what measures will be taken to safeguard the use of cryptocurrencies.
We will let you know once we get some information. So, stay tuned to this space for further updates.
