Earlier today Facebook Libra met with US Senators from the Senate Banking Committee. Here are a few highlights of note from the hearing.
Facebook Libra Meets with Lawmakers Again
Today Facebook answered questions from concerned US lawmakers on the Senate Banking Committee. As previously covered by Bitconist, lawmakers are worried that Facebook’s Libra cryptocurrency could operate outside the regulatory oversight of authorities and also function as a safe haven for illicit criminal activity.
When questioned about the intricacies of the cryptocurrency, Calibra head David Marcus said that Facebook will only integrate its Calibra cryptocurrency wallet into Whatsapp and Facebook Messenger. According to Marcus, Libra will not embed wallets from competitors but the Libra wallet will be interoperable amongst users desiring to send money between other cryptocurrency wallets.
Ultimately, this means that at the moment, Facebook’s wallet will be the only one integrated into its ecosystem of apps and this could possible lend a huge competitive advantage over other companies like Coinbase, Paypal, and future digital-asset wallet developers.
Examining Facebook Libra’s Plans
The meeting, titled, “Examining Facebook’s Proposed Digital Currency and Data Privacy Considerations” also saw Marcus explain why Facebook choose to headquarter the Libra Association in Switzerland and whether or not Libra will comply with US regulations. Marcus agreed that the US should be the leader in developing regulatory frameworks for cryptocurrencies and he said the Libra Association is headquartered in Switzerland because it’s where international financial groups like the Bank for International Settlements is situated.
Marcus said that Facebook has no intentions to “evade any responsibilities of oversight” and agreed that the currency will be regulated by the US Department of Treasury’s Financial Crimes Enforcement Network.
In response to lawmakers who said Facebook could not be trusted,