Facebook’s CEO Zuckerberg Urged by Senators to Withdraw Pilot Testing of Crypto Wallet Novi

Mark Zuckerberg of Facebook has been requested by a bunch of lawmakers to forthwith withdraw crypto wallet pilot and agree with the Senators that he will not publish his virtual currency namely “Diem” in the market. The lawmakers are of the view that Facebook is not equipped with and capable enough to manage and run a system which is based on virtual currency in the light of the fact that Facebook itself has failed time and again in safeguarding consumers and eliminating the risks.

The CEO of Facebook, Mark Zuckerberg, had, in the past, sanctioned development of a virtual currency namely “Diem”. The cryptocurrency project of Facebook is now complete and is ready to go through the process of testing. For facilitating the Diem currency, Facebook had also developed a Diem specific crypto wallet called “Novi”. Under the instructions of Zuckerberg, both, Novi and Diem, have been made public for the purposes of testing. However, there have been some concerns which have grown within the quarters of US Senate.

A joint letter signed by Senators Elizabeth Warren, Brian Schatz, Richard Blumenthal, Tina Smit and Sherrod Brown have been addressed to Zuckerberg. In this letter Facebook’s CEO has been urged by the signatory Senators to withdraw the pilot concerning Facebook’s digital wallet i.e. Novi.

Coinbase became the Facebook’s partner for carrying out the pilot testing of the digital wallet. Through the pilot testing, the users can utilize Novi for buying USDP i.e. Pax Dollars. The assets purchased were to be held by the NASDAQ listed crypto company, Coinbase.

However, it seems Zuckerberg will have to first deal with the concerns of the Senators.

It has been claimed by the Senators that there were several scandals in the past and present concerning Facebook. The Senators have strongly objected to the launch of proposed cryptocurrency “Diem” as well as the crypto wallet “Novi”. They reminded Zuckerberg that Facebook promised it wouldn’t launch virtual currency and wallet until approval is granted by the respective financial regulator.

It was further noticed by the Senators that despite Facebook’s assurances, once again his company is trying to proceed with the project. In this situation, it would be unwise to launch Novi for the purposes of testing. The Senators further suggested that they believe that the issuance of Diem will lead to instability in the US financial system. There is no adequate explanation rendered by Facebook as to how Diem will not be misused for funding criminal activities.

The Senators claimed that the actions of Facebook are once again found to be very irresponsible. They claimed that even in the past, Facebook had miserably failed time and again in safeguarding the interests of the consumers. Therefore, Facebook cannot be trusted anymore and therefor they would never allow it to launch the digital currency project.