The CEO of Facebook’s crypto wallet Calibra, David Marcus assures that Libra cryptocurrency project would not be launched until they address all regulatory concerns.
He delivered his piece at the hearing on Libra with the Financial Services Committee of the United States House of Representatives today, on July 17, as reported by a Cointelegraph correspondent.
Rep. Nydia Velazquez asked Marcus about Libra’s structure and management on the second day of hearings “Will you commit yourself to not launch before all the concerns from the Federal Reserve and other regulators are addressed?” To which Marcus replied “Absolutely.” Rep. David Scott followed up with a comment:
“Neither your white paper nor your subsequent Facebook post offered any concrete details as to how you plan to implement or enforce strong AML [anti-money laundering], how you plan to enforce KYC [Know Your Customer], and most important, to ensure the safety — and that’s what all of us are concerned with — of our financial system.”
Rep. Scott than asked Marcus about the companies plan to combat money laundering with Libra so as to protect the financial system. Marcus added, “blockchain gives additional information to law enforcement and regulators compared to our current system.”
Marcus further asserted that the current system can improve in order to preclude wrongdoers from using Libra for illicit activity. Rep. Jim A. Himes notes that “users will have the profoundly unfamiliar experience of assuming foreign currency risk” asking Marcus whether the company was going to make foreign currency risk transparent.
Marcus responds that the firm will have educational tools built into the product. Reportedly, committee chair Rep. Maxine Waters initiated the hearing with an indictment of Facebook’s past behavior. She notes in her report “demonstrated a pattern of failing to keep consumer data private on a scale similar to Equifax.”
Waters went on state that Facebook, “allowed malicious Russian state actors to purchase and target ads,” which purportedly influenced the 2016 U.S. presidential elections. A day before the hearing, on July 15, the Banking Committee released the opening statements by Marcus, wherein he stressed Libra and Calibra’s implications for commerce and consumers.
“State financial regulators will regulate Calibra as a money transmitter, and the Federal Trade Commission and the Consumer Financial Protection Bureau will monitor for consumer protection and data privacy and security issues.”
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