Facebook will have to explain and convince members of the US Congress of the merits of its Libra cryptocurrency project. David Marcus, head of the Calibra digital wallet, which will be backed by the digital motto, is testifying for two days before the Senate Banking Committee. In his prepared speech, he assures that Libra will not be launched until it receives the appropriate regulatory approvals.
“Facebook will not offer Libra digital currency until we respond to all regulatory concerns and receive the necessary approvals,” said David Marcus in his public testimony ahead of his appearance before the Banking Commission. “Libra is a payment tool, not an investment,” he adds.
Since its announcement, the cryptocurrency of Facebook has raised concerns among both US and European politicians who have highlighted the gaps in the company’s privacy in recent years. Last week, Jerome Powell, president of the US Federal Reserve, had expressed his doubts and insisted that the review of the project was “patient and thorough”.
With Libra, Facebook wants to “empower” billions of people.
The rest of David Marcus’ testimony will focus on the functions of Calibra, the subsidiary created by Facebook to manage the blockchain and digital wallet that will be used to use Libra. According to the Libra Association, the consortium of 27 partners that will serve as the de facto monetary authority for the currency, its objectives are in line with the concerns of the authorities.
“The Libra Association argues that financial inclusion, regulatory harmony, and consumer concerns are not competing goals, but that they go hand in hand with the goals of the Association to offer a simple, global currency. a financial infrastructure that empowers billions of people, “said Dante Disparte, policy and communications manager for the Libra Association. “Preparing for Libra’s launch in 2020 gives us time to discuss with regulators and policymakers around the world to address their issues.”