Members of the U.S. House of Representatives questioned Financial Crime Enforcement Network ( FinCEN ) director Kenneth Blanco regarding Facebook’s organized cryptocurrency Thursday.
Representatives Emanuel Cleaver, II (D-MO), Trey Hollingsworth (R-IN), Bill Foster (D-IL) and French Hill
(R-AR ) kept a briefing with members of the House Financial Services Committee, talking about the Libra project with Blanco, who takes it up FinCEN, the U .S. Treasury Department’s anti-money-laundering wing.
The briefing was held included in a broader look at just how machine learning and also artificial common sense can limit illicit money laundering and also related activities.
Cleaver’s issue appears to stem from Facebook’s alleged role in improperly storing user data and also spreading misinformation in the last few years, based on a press release.
“We’ve observed the significant damage that foreign adversaries and also bad actors have wrought on our democracy through Facebook’s platform, which was simply through messaging and also advertising,” he said in a statement, including
“Before we permit this kind of a giant corporation to start processing millions to billions of financial transactions , we need to study these issues and also make sure we have the tools and also guardrails in place to deter terrorists , extremists , and/or enemies from utilizing this kind of a platform to do harm to our nation .”
While the release failed to reveal what Blanco’s views on Libra are, or even whether or how FinCEN intends to supervise the project, it did say that Cleaver’s questions focused on Libra and Calibra, a new Facebook subsidiary which will develop digital wallets and other services for the cryptocurrency.
Calibra subscribed since a money services business with FinCEN earlier this year.
Broadly, “nefarious actors” are getting new ways to conduct illicit financial activities, Cleaver stated in the statement, citing cryptocurrencies as well as other new marketplaces since tools these actors can adapt.
“Now that we’re viewing a giant corporation like Facebook—which possesses already shown an inability to identify and also impede these kinds of performers at an acceptable level—creating its own virtual currency called Libra , it can not be understated the importance of Congress and financial transmitters to be proactive in utilizing the newest and also most powerful technologies to ensure the financial system is not being used improperly ,” he added .
He took to say that the briefing participants “had a fruitful discussion” about how the U .S . can take steps to prevent misuse.