The price of bitcoin plunged 10 percent on Tuesday after Facebook’s own digital currency project faced another drubbing — this time by lawmakers.
A Facebook executive in charge of the planned digital coin, known as Libra, received a harsh reception Tuesday by members of the Senate Banking Committee, including a senator who said people would be “delusional” to embrace a currency backed by Facebook.
“Facebook is dangerous,” asserted Sen. Sherrod Brown (D-Ohio), the committee’s senior Democrat. “Like a toddler who has gotten his hands on a book of matches, Facebook has burned down the house over and over and called every arson a learning experience,” Brown said.
“We’d be crazy to give them a chance to let them experiment with people’s bank accounts,” he added.
David Marcus, Facebook’s top executive overseeing the planned Libra project, appeared before the committee in an effort to convince lawmakers that the tech giant should be trusted to launch a global currency and banking system, as early as next year.
“We know we need to take the time to get this right,” Marcus told the committee.
Libra has been hammered by DC since the idea was unveiled in June, including criticisms from President Trump, his Treasury secretary and the head of the Federal Reserve, including complaints that the system will aid terrorists and other criminals.