Facebook is under scrutiny once again for its attempt at yet another expansion. The recent idea to hit the bloc is the introduction of a new financial currency that will allow people using social networking sites to make payments online. At this moment, this idea faces a lot of backlash due to the immensity of the financial network and the lack of regulations in the process which makes the system too big to fail and could require a taxpayer bailout. Zuckerberg has been summoned to testify at a hearing Wednesday by the House Financial Services Committee on Facebook’s plan to create a global digital currency.

The decisions made by the social media giant have come under great scrutiny especially after the Cambridge Analytica (CA) controversy came to the forefront. Policymakers around the globe are skeptical of this new digital currency as it gives the media giant a lot of control and financial influx. It would also invariably result in illegal transactions as it is not a part of the proper banking network. Initially, several high profile investors were also on board with the idea but have backtracked recently showcasing the loopholes in the project. Facebook’s own financial standing does bring sound investment but the current project will change the course of digital space if materialised.

In order to appease the lawmakers, Facebook CEO Zuckerberg has promised to meet all regulations within the United States of America (USA). For this purpose, the project will have to go through a lot of scrutinies to be approved. With Facebook’s last controversy, the congressmen this time around need to be well versed in the understanding of social media and how this new project impacts the financial system along with strict control over illegal financial transactions because while this facility would be convenient for consumers, it can also mean a lot of damage in terms of money laundering and drug trafficking.

Digital space might be too vast to regulate but penalisation of actions can be introduced in order to streamline the usage of social networking sites. At the same time, if the idea is to facilitate people without bank accounts, this digital currency could also result in an impact on federal reserves around the globe. Countries should chime in on this debate as Facebook, if faces opposition in densely regulated countries, plans to launch in countries with less regulation.