WASHINGTON, D.C. (WKRG) — Money makes the world go around. The way we spend it and make transactions is changing. Now a digital currency proposal from Facebook that has Congress concerned.
A like, comment, a “friend” request. That happens on Facebook every day. But what if Facebook became a place to do your banking? Can social media replace your ATM?
Facebook has proposed the Libra project. Libra will be a cryptocurrency. Facebook’s Libra will allow people to spend and send money through company owned apps. Like Facebook, Messenger or Instagram.
“ A cryptocurrency is just a digital currency that is issued, tracked, traced and recorded on block chain technology,” says Perianne Boring, Founder and president of The Chamber of Digital Commerce. She says Block chain allows transactions to be tracked every step of the way, “it’s radically transparent and digitally traceable so it’s very different from cash where this is no record of transaction.”
With memories of recent security breaches fresh in mind, members of congress worry whether Facebook will be any better at safeguarding people’s money. Among those worried, Alabama Senator Doug Jones “If you don’t do your job and this currency is used to facilitate human trafficking, drugs, fraud things like that are you prepared for Facebook and all of your Calibra and Libra uses to be looked at as criminal defendants” said Jones during a hearing. David Marcus from Facebook responded, “Senator we’re prepared to take the amount of time to ensure these things don’t happen”
But Jones wasn’t convinced, “they have a lot of work to do they want to make sure that have got all government regulators especially the United States. I’m particular concerned as to how that currency would be used for illegal purposes.”