On Wednesday, Facebook CEO Mark Zuckerberg appeared before the US Congress to answer questions about the Libra project. For the most part, he reiterated David Marcus’s earlier points, with some notable mentions.
If the US does not innovate, China will
First of all, Zuckerberg seems to believe that the future will include cryptocurrencies. He stressed that if the US does not adopt them, it will remain technologically behind.
“As we debate these issues, the rest of the world is not waiting. China is moving fast to launch similar ideas in the coming months. The Libra will be largely supported by dollars and I think it will expand America’s financial influence as well as our democratic values and our oversight around the world. If America does not innovate, our leading role in the financial industry is not guaranteed. ”
The comments of members of Congress have shown that they do not understand the concept of cryptocurrencies and that they still do not have enough confidence to support their mass adoption. Congressman Brad Sherman and some of his counterparts have argued that cryptocurrencies could be used to finance terrorism and money laundering.
If the US does not approve, Facebook will withdraw from Libra
Zuckerberg reiterated his commitment to meeting regulatory concerns before launching Libra. In the event that no approval will be obtained from the US authorities and the Libra Association votes to launch the project, he said that Facebook will withdraw.
“You said you would not launch without the approval of the US regulatory authority. What happens if the association decides to launch despite this? “
asked Congressman Bill Huizenga.
“I think we will have to leave the association. If we do not receive the necessary authorizations to go ahead and the association chooses to continue without us, then we will be in a position to no longer belong to the association, ”
was Zuckerberg’s answer.
The US Congress was not convinced
Following the hearing, Maxine Waters, chairman of the Congressional Finance Committee, said lawmakers’ concerns were not eased.
“I do not support Libra at this time. And it’s not like I’m going to support her if she does one or the other. I still do not know what it is, I do not think the project has been adequately explained. “
In a separate hearing yesterday, Treasury Secretary Steven Mnuchin said that the Financial Stability Supervisory Board (FSOC) has set up a working group to monitor cryptocurrencies and Libra.
Mnuchin added that one of the regulatory methods of the project would be through the institutions participating in the Libra Association.