Pols not sold on Facebook crypto plans

Facebook wants to take a bite out of Bitcoin’s business, but the social-media giant faces government pushback as it looks to join the cryptocurrency craze.

The company has some heavy hitters behind its project to create a global digital currency called Libra that will function similar to Bitcoin — but at least one prominent critic on Capitol Hill.

Facebook announced its plan on Tuesday, saying PayPal, Uber, eBay, Spotify, Visa and Mastercard are on board as partners. Rep. Maxine Waters (D.-Calif ), however, she she has concerns.

Although Libra isn’t set to launch until 2020, Waters, who serves as Chairwoman of the House Committee on Financial Services, swiftly issued a statement asking Facebook to delay its development.

She cited the company’s “disregard for the protection and careful use” of its users’ data, user exposure to “Russian intelligence and transnational traffickers,” and previous fines for deceiving customers and failing to keep consumer data private.

In addition to the delay, she suggested Facebook executives come before the committee to testify on those issues.

A federal prove into Facebook’s privacy practices and an antitrust probe in Congress will likely further regulators’ interest in the company.

Libra co-creator David Marcus said the new currency is necessary “because it’s time for the internet to have a protocol for money, and it’s time to try something new for the 1.7 billion people who are still unbanked 30 years after the invention of the web.”

Along with Libra, the company also announced the launch of Calibra, a subsidiary of Facebook, which will be a “new digital wallet for a new global currency.”

Marcus said one of the reasons for creating the subsidiary is to keep social and financial data separated after company shortfalls keeping users’ data safe in the past.

“We understand we will have to earn your trust,” Marcus wrote.

And Congress’ trust, too.