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- As per the recent disclosures about Facebook’s inability to safeguard its users, Ohio Senator Sherrod Brown said on Tuesday that the corporation should not be permitted to create a new cryptocurrency
- Facebook has mentioned several times that they are safeguarding and are always trying to reduce any harm from its use,said the letter posted by Brown, Richard Blumenthal, Elizabeth Warren, Brian Schatz, and Tina Smith
- A stablecoin system may be used by criminals and terrorists to launder their proceeds of crime and support their terrorist operations, according to the letter they are money frauds they are like bank deposits, and they are expanding extraordinarily rapidly but without adequate regulation
As per the recent disclosures about Facebook’s inability to safeguard its users, Ohio Senator Sherrod Brown said on Tuesday that the corporation should not be permitted to create a new cryptocurrency. Brown and several other Senate Democrats declared in a letter to Facebook CEO, Zuckerberg, that the company cannot be trusted to manage payment system or digital currency when its existing ability to manage risks and keep consumers safe has proven completely insufficient, citing the company’s use of algorithms on Instagram that have been alleged to harm teenaged girls.
Additionally, Facebook has mentioned several times that they are safeguarding and are always trying to reduce any harm from its use, said the letter posted by Brown, Richard Blumenthal, Elizabeth Warren, Brian Schatz, and Tina Smith. Facebook introduced a new program to test Novi, a waller digital application, in the Guatemala area of the US.
In the letter there were clear accusations against Facebook that it has violated the public’s safety, several times in the past. It has pledged to not launch any kind of payment system, even after rejection from the financial regulators. There have been many licenses that were circulated in several states for Novi.
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Novi, according to a spokeswoman, is looking forward to responding to the committee’s letter. The head of Facebook’s financial products division said on Twitter that the company hopes the pilot will show that stablecoins can be used for payments beyond how they are typically used today. Stablecoins are cryptocurrencies that try to peg their market value to an external reference, such as the value of a dollar. Several years ago, the firm revealed intentions for a digital currency, but it was never implemented. “Libra” was the original name, but was eventually changed to “Diem”.
In a letter sent in 2021, the Federal Reserve Chair Powell had warned that Facebook’s stablecoin system can give firepower to criminals and terrorists to launder money.. The comptroller, recently posted, of the Hsu Currency compared stablecoins to the wholesome financing markets, whose collapse triggered the 2008 crisis.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
