WASHINGTON, DC - U.S. Senator Jack Reed, a senior member of the Senate Banking Committee, expressed skepticism over Facebook’s announcement this week that it will be launching a new cryptocurrency named Libra.  Reed says Congress and regulators must provide meaningful oversight and urged his colleagues on the Senate Banking Committee to convene hearings.

Today, the Senate Banking Committee announced it will convene a hearing on July 16 to examine the issue.

“I have real reservations about Facebook creating its own currency.  There are already too many questions about the company’s lack of privacy protections and data handling that still need to be answered.  This venture raises even more questions about issues ranging from money laundering to economic privacy.  Currencies, in part, derive their strength and reliability on trust.  Before spending time and effort on a currency, Facebook should focus on addressing its shortcomings,” stated Reed.

This hearing follows a panel the Senate Banking Committee convened last year on “Exploring the Cryptocurrency and Blockchain Ecosystem.”