Senator Elizabeth Warren says Facebook should stop its operations for the Novi crypto wallet, along with four other colleagues that lashed out at Mark Zuckerberg so let’s read more about it in our latest crypto news today.
Senator Elizabeth Warren says that Facebook’s wallet should be stopped from operating while the wallet launch didn’t include Diem, the long-delayed cryptocurrency. Hours after Facebook went live with the wallet, Warren and four other senators from her party warned the CEO of Facebook Mark Zuckerberg, demanding that he should discontinue the program. Novi launched a pilot program in the US and Guatemala that allows users to buy and trade Paxos dollars with no fees. Coinbase also started providing Novi with crypto custody services and will hold all funds involved in the program. Novi doesn’t use the Facebook Diem cryptocurrency which didn’t stop the senators from acting. They wrote in a letter:
“Facebook cannot be trusted to manage a payment system or digital currency when its existing ability to manage risks and keep consumers safe has proven wholly insufficient.”
Facebook’s journey to launch a wallet and a cryptocurrency have been filled with issues. As of 2019, a few congressional hearings stopped the project that was originally called Libra but a slew of key partners dropped out of the association shortly after and Libra changed its name to Diem, with Calibra’s wallet changing names to Novi. Facebook made it clear this morning that the launch of Novi is the first step on the way to Diem’s rollout:
“We intend to migrate Novi to the Diem payment network once it receives regulatory approval.”
Whether 2021 will provide a favorable climate for Facebook’s crypto ambitions remains to be answered. The 2019 Libra hearings came in the aftermath of the Facebook Cambridge Analytica scandal which was an admonition that informed the testimony of Frances Haugen, a Facebook whistleblower before the Senate Commerce Committee a few weeks ago. The senators demanded that Facebook and Novi have to scrap their future plans to release Diem and wrote:
“Time and again, Facebook has made conscious business decisions to continue with actions that have harmed its users and the broader society.”
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