Congress grills Facebook execs on planned cryptocurrency

NEW YORK (CBS) Facebook calls it Libra. It’s the company’s plan to take on cryptocurrency. Facebook executive David Marcus explained to skeptical lawmakers how the digital currency would work and how it could help millions of consumers.

“Wouldn’t it be easier and safer if people could inexpensively and securely receive money transfers through their smartphones just like they do for so many things today?” Marcus asked.

Members of Congress– already concerned about how the social media giant handles user data– say not so fast.

“After all the times Facebook has abused the public’s trust– and you know that– do you really think people should trust Facebook with their hard-earned money?” demanded Sen. Sherrod Brown, D-Ohio.

Financial consultant Tyrone Ross says lawmakers are missing the point.

“Facebook is coming out and saying we have 2.4 billion people, we want to provide financial services to these people but we want to do it through new technology,” Ross said.

President Trump has already weighed in, calling cryptocurrencies “highly volatile and based on thin air.” His administration is concerned Libra will be misused to launder money and finance terrorism.

“They are scared of crypto because now the U.S. financial system has competition. And what they’re looking to do with Libra is regulate it so that now they can tax it and they can track it,” Ross said.

Some lawmakers are open to the idea.

“To announce in advance that we have to strangle this baby in the crib is wildly premature,” said Sen. Patrick Toomey, R-Pennsylvania.

Facebook faces an uphill battle convincing lawmakers and regulators it can be trusted with our money.

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