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Bitcoin Falls as Facebook’s Plan to Launch New Crypto Faces Privacy Concerns

Published 19/06/2019, 05:44
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Investing.com - Bitcoin and other major cryptocurrency price dropped on Wednesday in Asia following reports that the U.S. House Financial Services Committee asked the company to halt development of its crypto coin.

Bitcoin dropped 1.0% to $9,159.5 by 12:30 AM ET (04:30 GMT). Ethereum fell 1.5% to $266.26, while XRP was down 4.1% to 0.42885.

Litecoin outperform its peers today and gained 1.4% to $134.595.

The fall in prices came after Maxine Waters, chairwoman of the U.S. House Financial Services Committee, requested Facebook (NASDAQ:FB) to stop development of its new cryptocurrency Libra until lawmakers and regulators have properly reviewed the project.

"With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked expansion and extending its reach into the lives of its users," Waters said in a statement.

“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action,” she added.

The news came after the social media giant officially revealed details of its cryptocurrency plans.

The company said it has linked with 28 partners in a Geneva-based entity called the Libra Association, which will govern the new digital coin, while Facebook itself created a subsidiary called Calibra to offer digital wallets for the cryptocurrency.

The new digital coin is expected to launch in the first half of 2020.

Reports earlier said France has urged G7 central bankers to prepare a report on the project, while a German member of the European Parliament warned that regulators should be on high alert.

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