Facebook’s David Marcus Promises Libra’s Cooperation To Congress

The head of Calibra at Facebook, David Marcus has assured the members of the House Financial Services Committee that Libra is committed to cooperate with the regulators, according to a report by The Hill on July 9. 

In preparation for the upcoming Libra hearings on July 17, Marcus addresses a letter to Chairwoman Maxine Waters and members of the House Financial Services Committee. Marcus wrote, “I want to give you my personal assurance that we are committed to taking the time to do this right.”

The co-creator of Libra, Marcus is also the head of Calibra wallet and LinkedIn lists. His letter comes as the next step in a to and fro communication between Congress and Facebook. First revealed in mid-June,  Facebook’s Libra project is a stablecoin linked to a basket of fiat currencies and government bonds. 

Facebook has lined up 27 launch partners, including crypto exchange Coinbase, and intends to have at least 100 members for the Libra Association, which will act as the cryptocurrency’s governing council, when the token goes live. Following the release of Libra’s white paper, Waters wrote a statement expressing his concern, asking Facebook to cease work on Libra, in the middle of June, stating: 

“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action.”

Waters and the House of Representatives Committee on Financial Services further requested Facebook and partners to impose an official moratorium on Libra development. A collection of advocacy groups submitted a letter with their own questions on July 2 and requested a moratorium on development of Libra.

On July 3, Marcus posted on Facebook so as to address these concerns and stressing that Facebook would have a limited role in governing the stablecoin-like cryptocurrency Libra amongst the anticipated hundred-plus members of the planned Libra Association.  David Marcus is rumored to testify at this hearing, as well as at the Senate Banking Committee hearing on July 16.

Interestingly, Libra’s commercial success is higher than those of other cryptocurrencies as offering financial services through its social media services including Facebook, WhatsApp and Instagram and their billions of users, the firm can easily guarantee convenience and price competitiveness.

The regulators across the globe have shown concern over Libra’s launch ever since the projects formal announcement was made. Recently, the members of the G7 formed a task force led by France, that will look into the project. The Bank for International Settlements (BIS) also expressed concern over the disruption that might occur with big tech firms like Facebook entering the financial space, in its annual report for 2019. 

Due to the fear of the potential threat of Libra, China’s central bank has been reportedly hastening the development of its own digital cash, according to a People’s Bank of China (PBoC) official. 

Read more: Korean Watchdog Raises Concerns Over Facebook’s Libra

Image Source – Pixabay.com

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