“Congressional committee hearings were expectedly hostile against Facebook CEO Mark Zuckerberg who was unable to address the concerns of lawmakers.

Facebook’s venture into the cryptocurrency business is turning out to be a failure as major companies have announced that they have left the Libra Association. Libra is a global currency that is being pushed by the technology giant.

Libra uses a blockchain system that contains encoded information that can be easily accessed by the public. Traditional blockchains are not bound by central banks of countries and their values are determined by pure free market forces and adherence to the most basic concept of supply and demand. Libra however is different.

While it uses blockchain, it will allow itself to be regulated and has a reserve much like a sovereign country. The Libra reserve, in theory, will control speculations and fluctuations to appreciate the values of the currency.

According to Libra’s official website, it intends to create a financial infrastructure that will empower billions of people. Libra’s target consumers are those that have no bank accounts.

Libra estimates 1.7 billion people around the world do not have access to any type of banking service which it said is 31 percent of the global population.

“Moving money around the world should be as easy and cheap as sending a text message. No matter where you live, what you do, or how much you earn,” Libra said on its page. It added that any person with even the most basic type of smartphone can access Libra and transact.

Despite the potential innovation that will purportedly provide a democratized currency for everyone, major US companies like Paypal, Visa, Mastercard, eBay and Stripe said they will not join the Libra Association until regulatory requirements are met.

Libra promises to be stable, fast, scalable and secure. These claims, however, are part of the problem as European governments and US lawmakers are not convinced regarding Facebook’s ability to avoid manipulation.

Congressional committee hearings were expectedly hostile against Facebook CEO Mark Zuckerberg who was unable to address the concerns of lawmakers on the issues of Russia’s alleged interference in the 2016 US elections.

They emphasized the importance of trust as allowing Libra to be fully functional would allegedly create a disruption in the international economy. The US dollar would also be considered as a competitor if the Libra is rolled out.

Among those that were called out against Zuckerberg and Facebook were issues involving Cambridge Analytica, privacy law violations, political advertisements and security. Since its announcement last June, the European Union and its ministers were sceptical over Facebook’s planned currency.

In September, France’s Minister of the Economy Bruno Le Maire said Europe should not allow the development of Libra. He said that the monetary sovereignty of countries like his are at stake.

His concerns are valid as Facebook has the propensity and the power to change the political landscape of nations. Libra will definitely shake the financial system as accountability may not be clear once trade and currency exchanges of the Libra are put in motion.