There has been an enormous amount of money that will be poured into the project by the 28 founding members of the Libra Association, each contributing at least $10 million to run a node.
The Mark Zuckerberg-led company, which is hoping to begin the project next year with 100 partners, has already hit a roadblock with the announcement.
Facebook has endured multiple scandals in recent years - from the Cambridge Analytica ordeal to other privacy concerns.
"With the announcement that it plans to create a cryptocurrency, Facebook is continuing its unchecked".
A dystopian scenario many people have speculated upon is one in which Facebook dominates the payment space and continues their autocratic data collection and privacy infringement, but their sheer size and power will render governments across the globe incapable of curbing their monopoly. This most awaited project of Facebook is going to face inspection from the Senate of Banking of the US. "Facebook executives should also come before the Committee to provide testimony on these issues".
"The regulators are absolutely right to be raising alarm signals, and I think consumers should approach this with extreme caution", he added.
He assured that Calibra will be regulated like other payment service providers; information shared with Calibra will be separate from information shared on Facebook. It's easy to see how attractive an alternative like Libra could be to people in countries beset with hyperinflation such as Venezuela. One official pointed out that the United Kingdom already had a cheap, fast and efficient payment system. In the State Duma of the Russian Federation, they said that Libra in the country would not only not be legalized, but would also restrict foreign sites through which it could be acquired.
However, the social networking site has reportedly been in talks with regulators about its cryptocurrency plans.
The senior Democrat on the Senate Banking Committee said Facebook's new digital currency will give the tech giant unfair competitive advantages in collecting data on financial transactions as well as control over fees.
The Fed Chairman also claimed that Facebook's Libra will not have any effect on the central bank's ability to conduct monetary policy noting that cryptocurrency is still in its infancy and will not affect monetary policy as "we're a long way from that".