Facebook: Senators urged Mark Zuckerberg to give up its Novi crypto wallet pilot
Facebook dropped its Novi crypto wallet this week for a pilot run, and just hours after its launch, government officials have called on Mark Zuckerberg to immediately discontinue the cryptocurrency wallet that is being powered by Coinbase.
Five U.S. senators sent a letter to the Facebook chief executive officer, and they are Brian Schatz, Elizabeth Warren, Richard Blumenthal, Sherrod Brown, and Tina Smith. The officials signed the letter and sent it to Zuckerberg on Oct. 19.
They are urging the Facebook chief to stop its Novi crypto wallet project, and it should be taken down immediately. The senators cited the extent of the controversies that the company is facing as one of the reasons for their opposition to the launch of its own blockchain-based digital wallet.
The officials also noted that Novi was originally designed to hold the Diem cryptocurrency, but it was changed to Paxos Dollar (USDP) during the pilot launch. They said that this happened as the Diem that was formerly named Libra has been subjected to heavy scrutiny and regulatory barriers.
"Unfortunately, Facebook's decision to pursue a digital currency and payments network is just one more example of the company' moving fast and breaking things (and in too many cases, misleading Congress in order to do so)," the senators stated in the letter.
They added, "Time and again, Facebook has made conscious business decisions to continue with actions that have harmed its users and the broader society."
At the end of the letter, Warren, Schatz, Brown, Blumenthal, and Smith directly asked Zuckerberg to cancel the Novi pilot right away. They further told him to commit to a promise that he wouldn't bring Diem to the market.
CoinTelegraph noted that the note came from the office of Senator Brian Schatz, and it was co-signed by the other four officials. The outlet further mentioned that the senators made the request as they think the social media giant could not be trusted with managing a payment system or digital currency based on what it has shown so far regarding its ability to manage risks and keep users safe.