Facebook called before Senate panel over digital currency project

WASHINGTON (Reuters) – Facebook Inc’s intends to create a global cryptocurrency will face scrutiny out of your U.S. Senate Banking Committee on July 16, the hottest sign that policymakers world wide are casting a wary eye on the project.

The hearing will explore the project, dubbed Libra, along with any data privacy considerations it may possibly raise, the committee said on Wednesday. No witnesses are actually announced yet, depending on a committee spokesperson.

David Marcus, who oversees Facebook’s blockchain efforts, is anticipated to testify, as outlined by a source in Washington knowledgable about the matter.

The announcement comes some day after the social media giant unveiled offers to launch a worldwide cryptocurrency, which immediately attracted attention from regulators worldwide, and skepticism from Washington.

Representative Maxine Waters, the Democrat who chairs your place Financial Services Committee, said Tuesday she planned to similarly call Facebook to testify, and asked the organization to halt the work while policymakers studied it.

In May, the leaders in the Senate Banking Committee wrote to Facebook seeking details on rumors of cryptocurrency project, and how it would protect consumer information.

On Tuesday, a Facebook representative said the business looked forward to answering lawmaker questions. The agency did not immediately deal with a ask for comment on the July 16 hearing.

Facebook wishes to launch the Libra in your first 50 % 2020. They hope not only will it power transactions between established consumers and businesses globally, but offer unbanked consumers usage of financial services now.

Before Tuesday’s announcement, Facebook had been facing significant backlash over mishandling user data rather than doing enough to prevent Russian interference in the 2019 U.S. presidential election. Those issues have led some government officials to for Facebook to incur penalties, or possibly be forcibly broken up.