Facebook leadership was summoned to the Senate because of plans to introduce cryptocurrency

Senators are concerned about the security of personal data of future Libra users.

On July 16, Facebook representatives will take part in the meeting of the Senate Committee on banking affairs and answer questions from legislators concerned about the plans of the company, which is going to create its own cryptocurrency soon.

The hearings will focus on the project of launching the Libra cryptocurrency, as well as the associated risks, including the security of personal data of users. The names of witnesses who may be called to the meeting to testify have not yet been disclosed, the press service of the Committee said.
According to FreeNews source familiar with the situation, it is expected that David Marcus, who currently manages Facebook projects related to the use of blockchain technologies, will speak at the hearings.

On Tuesday, Facebook representatives spoke about plans to launch their own global cryptocurrency, which immediately aroused both interest and concern among financial regulators in many countries.

Democrat Maxine Waters, who heads the Financial Affairs Committee in the House of Representatives, said on Tuesday that Facebook representatives will be invited to hearings in the lower house of Congress. Waters asked the company to suspend the implementation of the project for the time during which legislators will get acquainted with the details of the initiative.

The rumors that the Internet giant is going to create its own digital currency began to circulate in Washington last month. In May, the leaders of the Senate Banking Committee sent a letter to Facebook with questions about the possible launch of the cryptocurrency and how the company is going to protect the personal data of users.

On Tuesday, a Facebook spokesperson confirmed that the company will answer all questions from lawmakers. There is no official confirmation of Facebook representatives ‘ participation on hearings in July.

Facebook plans to launch the Libra cryptocurrency in the first half of 2020. The company hopes that Libra will be used in transactions by users around the world. In addition, Facebook suggests that the new currency will allow many people who are not clients of banks, for the first time in my life to access financial services.