U.S. Sen. Elizabeth Warren has written to Meta CEO Mark Zuckerberg asking for a detailed explanation of the company’s stablecoin plans. Warren said the lack of transparency regarding Meta’s recent efforts in the stablecoin space is “very concerning.”
Warren said Meta’s new efforts in payment systems and financial services should be carefully considered, particularly citing the company’s controversial past with the Libra (later renamed Diem) global stablecoin project. Democratic senators have long been wary of big tech companies’ activities in the crypto financial space.
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The letter asked Meta to share details about the stablecoin pilot program by May 20th. The information Warren requested included the project’s expected launch date, the third-party stablecoin used, and privacy and risk management measures.
According to people familiar with the matter, Meta tested USDC-based stablecoin payments with select content creators in the Philippines and Colombia in April. Stablecoin payments are reportedly aimed at providing content creators with faster and lower-cost cross-border transfers.
*This is not investment advice.
