Facebook CEO Mark Zuckerberg has stated that the company’s cryptocurrency project Libra will not launch until it gets regulatory approval. Zuckerberg told the House Financial Services Committee that they would not launch the project anywhere until US regulators give an okay.
Facebook ready to address regulatory concerns surrounding Libra
The Facebook CEO submitted testimony to the US House Financial Service Committee addressing most of the concerns legislators have expressed about the project. He further indicated that they are supporting the delay in the launch of Libra until they meet US regulatory concerns. Legislators have raised concerns regarding the financial stability of Libra, its interference with the monetary system of the US, and the potential role of cryptocurrency in aiding terrorism.
Zuckerberg affirmed that Libra would be independent, and the Libra Association will have control over it. He gave assurances that Facebook will not influence or interfere with the operations of Libra. In a carefully drafted testimony, the CEO avoided popular words in the industry, such as “cryptocurrency” and “Bitcoin.” This is in a bid to avoid irking members of Congress who have been critical about the project. He dwelled more on how the Libra will make things easier.
He indicated that Libra would make transactions easier and secure, just like sending a text. Further, Zuckerberg said that this would be a payment system fully backed by high liquid assets and a cash reserve. According to Zuckerberg, Libra will not compete with the sovereignty of currencies but will rather augment them. It will work with central banks and the Federal Reserve to ensure non-interference to monetary policies.
The testimony is for acquainting Congress ahead of Zuckerberg’s public hearing before the committee.
Other countries could launch a project similar to Libra
Facebook, the company fronting the Libra project, has had several scandals in recent months. Zuckerberg has acknowledged that he understands the skepticism from people because of the reputation of the company. However, he has warned that if the US delays in getting on the cryptocurrency trend, other countries could take advantage.
A digital payment system will be important going into the future. And according to Zuckerberg, the US should lead on this or other countries will capitalize and lead. He added that foreign countries or entities could act without a similar commitment to transparency or regulatory oversight in the US.
So far, David Marcus, the Libra Project head, has faced Congress on the matter surviving several hours of interrogation. At the time, Facebook was ordered to halt progress of the Libra project. Marcus gave assurance to Congress that they were going to satisfy regulatory authorities ahead of next year’s launch of Libra.