Bitcoin price slumped on Wednesday as Facebook’s Libra was slammed in the Senate. The cryptocurrency plunged 14.9% to $9,379 by 11:40 PM ET (03:40 GMT).
Senators called Facebook’s crypto proposal as a toddler playing matches who burns the house down and criticized the company for repeatedly violating consumers’ privacy. During the hearing, a U.S. senator said the social media giant was “delusional” to believe people will trust it with their money.
“Facebook (NASDAQ:FB) has demonstrated through scandal after scandal that it doesn’t deserve our trust. We’d be crazy to give them a chance to let them experiment with people’s bank accounts,” Democratic senator Sherrod Brown, the ranking member of the Senate Banking Committee, said.
United States Treasury Secretary Steven Mnuchin Steve Mnuchin warned on Monday that the company will face much tighter regulatory scrutiny if it ever offers digital financial services. He said that the company “must implement the same anti-money-laundering safeguards in countering the financing of terrorism as traditional financial institutions.”