By On October 24, Facebook’s CEO Zuckerberg said in a testimony that the Libra cryptocurrency will be US regulatory compliant before it is launched anywhere in the world, or else Facebook will cease to be part of the Association.
The hearing, which took place on October 23, had many representatives concerned that Mark Zuckerberg did not disclose anything new about Facebook’s plan for Libra. A ranking member, Patrick McHenry R-N.C, stated:
“Frankly, I am not sure that we have learned anything new here.” The view was shared by other members, including Representative Sylvia Garcia, who said: “I don’t think it is going to be that independent if Facebook has such control and it is their platform.”
Libra Will Be US Regulatory Compliant
Facebook planned to launch Libra in 2020 when they first announced their project in June 219. However, Zuckerberg said in his testimony that Facebook would launch Libra only after it is gained approval from US regulatory authorities:
“Even though Libra association is independent and we don’t want to control it, I want to be clear: Facebook will not be part of launching the Libra payments system anywhere in the world until US regulators approve.”
Is Libra’s A Potential Threat To the US Dollar?
Congressman Steven Stivers raised concerns about Libra threatening the US dollar and other Anti-Money Laundering (AML) and Bank Secrecy Act (BSA) concerns, to which Zuckerberg responded:
“I want to be clear; this is not an attempt to create a sovereign currency. Like the existing online payments system, it’s a way for people to transfer money.”
As one of the representatives that support the Libra initiative, Congressman Andy Barr pointed out that Libra cryptocurrency could protect the US dollar from external threats.
On the same note, Zuckerberg added:
“While we debate these issues, the rest of the world isn’t waiting. China is moving quickly to launch similar ideas in the coming months. Libra will be backed mostly by dollars, and I believe it will extend America’s financial leadership as well as democratic values and oversight around the world. If America does not innovate, our financial leadership is not guaranteed.”
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