The European Commission has asked Facebook and the Libra Association to respond to a series of questions on financial stability, money laundering and data privacy risks that could be posed by the project, CNBC reported on Monday, October 7.
Facebook and the Libra Association were sent a list of questions from the Commission’s executive branch asking for a better understanding of the proposed Libra cryptocurrency, an EU spokesperson told CNBC.
European countries like France have vowed to block Libra’s development, stating it poses a risk to the sovereignty of nations’ currencies. Data privacy regulators in Europe have also expressed doubts over the combination of “vast reserves” of personal and financial information that would be gathered as part of the Libra proposal.
Earlier this month, PayPal announced it was withdrawing from Facebook’s Libra Association. Visa and Mastercard also have been rumored to be wavering in their support for the project.
Originally, there were 28 companies backing Libra’s development and ultimate deployment. Members of the Libra Association consortium were asked to invest at least US$10 million each to help cover the operating costs of coming to market with the digital coins and to fund their issuance.
The PayPal move, though not explicitly tied to any series of events, comes as the Libra project has been criticized and scrutinized by several global regulators focused on privacy and security. Facebook, for its part, had stated it would not have sole control over the crypto.
As has been reported, Rep. Maxine Waters, the Democrat lawmaker who serves as chairwoman of the House Financial Services Committee, had gone on record to state that the crypto development should be halted while Congress “can get a handle” on Libra, and said that Congress would look to “move aggressively” on the matter.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Chamber of Commerce Sues to Overturn FTC Non-Compete Ban
Apr 24, 2024 by
CPI
FTC Chief Warns of Healthcare Price Fixing Risks Amid Tech Advancements
Apr 24, 2024 by
CPI
Amazon’s Investment in Anthropic Faces Antitrust Scrutiny
Apr 24, 2024 by
CPI
Italian Antitrust Authority Fines Amazon €10 Million for Unfair Trade Practices
Apr 24, 2024 by
CPI
Tuta Mail Raises Alarm Over Google Search Ranking Plunge Amidst DMA Rollout
Apr 24, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI