US Senator Sherrod Brown Believes Libra Is A Subprime Mortgage

US Senator Sherrod Brown didn’t hold back when talking about Facebook’s foray into the crypto space comparing Libra with the subprime mortgage crisis that caused the global recession in 2008 as we have read previously in the altcoin news.

Facebook’s entry into the crypto world has made many enemies in the political circles and the backlash for the cryptocurrency was so bad that it painted the rest of the crypto community in a bad light. However, this week the senators have discussed the nature of cryptocurrencies and Libra separately.

The high ranking senator Sherrod Brown stated that before the economy was destroyed in 2008, the bankers were trying to pitch innovative products- subprime mortgages. Now Facebook claims that its new currency will help the unbanked and underbanked people so these ‘’ mortgages’’ are supposed to help people who have never had the access to credit archive, leave the American dream and become homeowners eventually. The senator continued to explain that in reality, the mortgages ripped off millions of people and families who ended up losing their homes and life savings so they wrecked the economy and made the inequality in the country even worse. Some of the tech companies and Wall Street banks who were hiding behind innovation as an excuse took over the important public services and destroyed it further.

The primary fear arises from the notion that Facebook is attempting to become the world’s first and largest internet bank. With a massive user base of third of the world’s population, even a fraction of the users to use Libra will destabilize the entire existing financial system. The comments that the senator Brown made are similar to those of the Republican crypto adversary Brad Sherman who said that Libra could ‘’ do more to endanger America than 9/11.’’ His rhetoric was applied to bitcoin as well as referring to drug dealers, human traffickers, and money launderers.

As seen in the latest cryptocurrency news, Facebook has been in the heat and under pressure from the regulators over the past few weeks. Earlier this week, the company hinted that the project ‘’ may never see the light of day.’’ The data privacy scandals are among the reasons why it is not wise to let Facebook mess up with user bases and data and especially not money.