Elizabeth Warren Seeks Clarity from Meta on Stablecoin Plans

U.S. Senator Elizabeth Warren has written to Mark Zuckerberg, requesting more information about Meta's latest stablecoin initiative, expressing concerns over the company's lack of transparency. According to Odaily, Warren highlighted that Meta's vast global user base could significantly impact market competition, user privacy, payment system integrity, and financial stability with any stablecoin-related business. Previously disclosed information indicates that Facebook has tested stablecoin payment features with select creators in Colombia and the Philippines, using USD Coin (USDC). Users are required to link third-party crypto wallet addresses. A Meta spokesperson clarified that the company does not have a Meta stablecoin, but aims to enable users and merchants to utilize various payment methods, including third-party stablecoins, on its platform. It is noteworthy that Meta launched a stablecoin project named Libra in 2019, later renamed Diem, which was terminated in 2022 due to regulatory pressures. Warren has been one of the most vocal critics of cryptocurrency in the U.S. Congress and has repeatedly questioned Meta's stablecoin plans.