WASHINGTON–It isn’t just credit unions calling on Congress to proceed with caution in allowing Facebook to roll out its own cryptocurrency, called Libra.
The Independent Community Bankers of America has sent a letter to Congress in which it said a regulatory regime comparable to that which applies to banking industry payments products and services should apply to Libra if policymakers allow it to proceed.
"The proposed creation of Libra, if allowed to proceed, would be a significant and irreversible development that would alter the global financial landscape," ICBA President and CEO Rebeca Romero Rainey wrote. "The stakes are too high to proceed without a thorough understanding of the risks and consequences, intended and unintended."
‘Enormous Concentration’
The banking trade group said Facebook’s market power, influence, and data sharing jeopardize consumer privacy, with the integration of tech giants and consumer finance resulting in an enormous concentration of financial and technological data and assets. ICBA also cited Libra’s potential impact on global financial stability. ICBA further warned that Libra would create an avenue to money laundering without proper oversight.
“If policymakers allow Facebook to implement Libra, appropriate regulation will be needed to mitigate these risks and ensure public trust, ICBA wrote.