Copy link
Increase text size
Decrease text size
Link copied

David Marcus' opening statements released ahead of Facebook's Libra hearing

"David Marcus" by Loic Le Meur is licensed under CC BY 2.0 at

Tue, 16 Jul 2019, 06:21 am UTC

David Marcus, head of Facebook’s crypto wallet Calibra, has some reassuring words for members of the Congress, as the United States Senate Banking Committee released his opening statements ahead of the cryptocurrency project’s July 16 hearing.

Marcus addressed the issue of the social media giant’s upcoming stablecoin Libra and its associated wallet Calibra, which have run into several political oppositions. Specifically, he provided an overview of the structure and management of both Libra and Calibra and their corresponding implications for commerce and consumers.

Once again, he reiterated and emphasized that no single organization will be solely responsible for the Libra Blockchain and the Libra Reserve, but rather, a cooperative approach will be taken. He further reassured that Facebook is working to form the Libra Association, which is an independent membership-based organization.

Once the Libra network launches, however, Facebook and its affiliates will have the same privileges, commitment, and financial obligation as any other founding member of the Association,” he wrote, adding that the social networking site is targeting to gather around 100 members prior to the launch of the Libra Blockchain.

He also made clear that the Libra Association expects Libra to be licensed, regulated, and subjected to supervisory oversight and to contribute to the battle against illegal activities including money laundering and terrorism financing. Marcus also underscored the Libra Blockchain will not hold and monetize on personal data. Its privacy regulator will be the Swiss Federal Data Protection and Information Commissioner (FDPIC).

Marcus further clarified that Libra is not an investment but a payment tool and should be treated like cash. Furthermore, unlike other stablecoins, Libra is not pegged to a single asset.

Libra will be fully backed on a one-to-one basis through the Libra Reserve, which will hold a basket of currencies in safe assets such as cash bank deposits and highly liquid, short-term government securities. These currencies will include the U.S. dollar, the British pound, the euro, and the Japanese yen.

Meanwhile, in response to Fed Chairman Jerome Powell’s comment that the review process of Libra should be thorough, Marcus said he “strongly” agrees, adding that he is expecting this to be the “broadest, most extensive, and most careful pre-launch oversight by regulators and central banks in FinTech’s history.”

Facebook will not offer the Libra digital currency until we have fully addressed regulatory concerns and received appropriate approvals.

Prior to the hearing, the U.S. Chamber of Digital Commerce held an education day where members of the House of Congress were taught about the nuances of the nascent technology.

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Bitcoin (BTC) $9,230.78 (+0.09%)
  • Ethereum (ETH) $238.19 (-0.59%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $234.41 (-0.77%)
  • Bitcoin SV (BSV) $183.74 (+1.02%)
  • Bitcoin (BTC) $9,230.78 (+0.09%)
Feb 21, 2020 (Friday)
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
Brazil to launch new payment system in response to cryptocurrencies
Digital currency exchange Coinbase Pro lists Kyber Network token
Norwegian Air to soon start accepting crypto payments
Swedish central bank begins CBDC pilot with Accenture
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
Telecom companies complete cross-carrier mobile payments using blockchain
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
South Korean ICO project discontinued, to return $7.5M to token holders
Samsung maintains crypto support in soon-to-launch Galaxy S20
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
Coinbase becomes first crypto company to receive Visa principal membership
Dubai Economy and six banks launch KYC Blockchain Consortium
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.