5 democratic senators, including the leadership of the United States (US) Banking Committee have urged Facebook CEO Mark Zuckerberg to stop Diem’s stablecoin project and Novi’s crypto wallet.
The call was made through an official letter dated 19 October 2021:
"In terms of payment system management or digital currency, Facebook cannot be trusted. Assurance of consumer asset security is clearly inadequate… We urge you to immediately stop testing Novi and not bring Diem into the market. ”
The request from the senator came after Facebook's chief financial officer, David Marcus, revealed that they would not launch the two products as long as the legal framework was not fully implemented.
However, according to the senate, the legal framework for stablecoin is dependent on ongoing discussions among the country's financial supervisors.
As reported in mid -September, stablecoin was viewed as a high -risk asset to the attention of the Securities and Exchange Commission (SEC) and the Office of the Currency Controller (OCC).
Federal Reserves chairman Jerome Powell has also previously expressed concern over the stablecoin threat to the fiat currency.
The launch of Novi and Diem has been delayed several times. Is there still hope for Facebook to actually launch this product of theirs?
At the time of writing, there has been no response from Facebook. However, a spokesman for Novi said he would reply to the letter in the near future.
