Former fed prosecutor claims blocking Libra will pose national security risk

The United States’ proposed move to block the launch of Facebook’s Project Libra will likely cause “national security implications”, according to former federal prosecutor Katie Haun.

Haun, who is now a partner at Andreessen Horowitz, spoke to CNBC in an interview on whether cryptocurrency can become a mainstream asset.

Andreessen Horowitz is one of the 28 founding members of the Libra Association, although PayPal’s decision to pull out over the weekend leaves the number of participating organisations at 27.

The US Senate had a hearing on Libra in August, with concerns being raised over the company being based in Switzerland and the potential threat to the stability of the US dollar.

Haun said: “They got more attention because of the high-profile nature of the project and the fact that Facebook was involved. I think it would be a really dangerous thing, and frankly a dangerous precedent to start shutting down technology before it’s built.”

She also noted that if the US halts the launch and innovation of Libra, it would see rivalling nations China and Russia leave the US in the dust as they both plan to launch their own currencies in the near future.

Coin Rivet reported on China’s plans to launch a Central Bank Digital Currency (CBDC) in August, with a launch date currently scheduled for November.