Facebook is struggling to find allies in Washington, D.C., this week. First it was lawmakers in Congress who expressed skepticism about Facebook’s cryptocurrency plans, and then Federal Reserve Chairman Jerome Powell. Now, President Trump has weighed in, tweeting last night that the proposed Libra currency “will have little standing or dependability.” He is “not a fan of Bitcoin or other Cryptocurrencies” in general, he added.
The wave of criticism comes as Congress prepares to hold hearings next Tuesday and Wednesday on Facebook’s crypto plans. It’s clear that policy makers want to avoid being seen as bowing down to the social media giant at a time when the company’s role in areas like consumer privacy and political messaging is being examined. The question is whether the pushback will go further than a grilling on Capitol Hill. Given the breadth of criticism being directed at the company, it seems unlikely that a couple of hearings will be the end of the matter.