Senate sets hearing on Facebook’s cryptocurrency plans

The Senate Banking Committee on Wednesday scheduled a hearing on Facebook’s plans to create a new cryptocurrency.

The hearing on “Libra” will take place on July 16, with witnesses yet to be announced.

Facebook announced plans to launch the cryptocurrency on Tuesday.

The plans for the alternative financial system were laid out in a website and white paper promoting Libra as a way to make transferring money as easy as sending a text message.

“Libra’s mission is to enable a simple global currency and financial infrastructure that empowers billions of people,” the white paper reads.

The hearing comes after Sen. Sherrod Brown (D-Ohio), the top Democrat on the banking committee, questioned the company’s plans.

“We cannot allow Facebook to run a risky new cryptocurrency out of a Swiss bank account without oversight,” he said. “I’m calling on our financial watchdogs to scrutinize this closely to ensure users are protected.”

In a letter last month, Brown and Senate Banking Committee Chairman Mike Crapo (R-Idaho) pressed Facebook over its plans to launch a cryptocurrency, posing questions about how the company plans to protect consumers’ financial data.