Washington, D.C. — In the wake of this morning’s Senate Banking Committee hearing on Facebook’s plan to launch Libra, a new global cryptocurrency, the Open Markets Institute is calling for Libra’s 27 consortium partners to withdraw from the project.

“Today’s hearing confirmed that there are clear privacy risks, monetary risks, regulatory questions, and monopolistic questions that are far from being answered,” said Open Markets Senior Fellow Matt Stoller. “David Marcus, Facebook’s head of Calibra, made it clear that Facebook has done very little to fundamentally change its privacy practices and is not willing to reveal exactly how decisions will be made.”

Strong critiques are coming from both sides of the aisle, with policymakers highlighting concerns ranging from money laundering, sanctions enforcement, liquidity/monetary instability, and Facebook’s chronic inability to protect user privacy. Earlier this week, Federal Reserve Chair Jerome Powell also raised concerns around the project.

In light of the clear and fundamental dangers that arise from Libra moving forward, Open Markets calls on Libra’s partners to collectively withdraw from the consortium.

For More Information:

Libra Basics: What Is Facebook’s Digital Currency Libra Action Letter

Matt Stoller in the New York Times: Launching a Global Currency Is a Bold, Bad Move for Facebook