Two senators from the United States have warned the three leading payment firms MasterCard, Visa, and Stripe that they should reconsider their alliance with Facebook’s Libra project.
These US senators gave the warning to these payment firms in a written letter notifying them about the serious risks of the Libra project that they can face.
One of these senators is the senior democrat of the Senate Banking Committee whose name is Senator Sherrod Brown and the other one is Senator Brian Schatz.
Companies should be aware of the Libra’s Risks
US senators have clearly demonstrated the risks that Facebook’s Libra is facing nowadays. They say that if the companies get involved with the Libra project before knowing about the risks then these issues which Libra is currently facing will automatically affect these payment firms.
So the two senators caution the payment firms to know and understand these risks before making an alliance with the Libra project.
In the letter, they state it in the following words:
We urge you to carefully consider how your companies will manage these risks before proceeding, given that Facebook has not yet demonstrated to Congress, financial regulators — and perhaps not even to your companies — that it is taking these risks seriously.
What Risks Libra Project involve
Before giving a warning to these payment firms, the senators Sherrod Brown and Brian Schatz also highlighted the major issues that Libra is facing. In the letter, they say that enough details have been taken from Facebook on Libra project by the regulators. These details provide a clear picture of the risks that Libra can cause on the financing system.
Mentioning the major issues of the Libra, senators say:
Facebook is currently struggling to tackle massive issues, such as privacy violations, disinformation, election interference, discrimination, and fraud, and it has not demonstrated an ability to bring those failures under control.
The payment firms will be feeling relaxed now after getting the warning letter by the senators as they were already worried about their involvement with the Libra project.
Now it will be easy for the companies to decide whether they have to support Facebook’s Libra project or not.
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