The atmosphere in Washington DC where David Marcus, Head of Facebook Libra testified on behalf of Libra was tensed and uncomfortable as the Senate appeared to have outperformed Libra in a thug-of-war questioning session.
Libra Got Crushed
At the end of the first day of the much anticipated Senate hearing on Libra that was announced last week, it was evident that Libra had no answer to the many questions already prepared to put the project to a total stop.
However, David Marcus calmly argued that Facebook’s Libra project was a “necessary evil” ahead of China’s plans of running a worldwide completely separate out-of-reach financial system. This, unfortunately, was the only thing Libra had to offer the angry Senators who seemed to have had pending disagreements with the Facebook system.
Facebook Can’t Handle Privacy Efficiently
Among the cogent issues that raised important questions were Facebook’s inability to handle issues of privacy leaks and several lies, the social media giant had been caught to have told in the past. The Senators maintained that Facebook was not prepared to handle money belonging to the public if it couldn’t handle data belonging to the same set of people.
Libra’s Partners Expressed Pessimism Privately
Many of the Senators present had serious concerns about Facebook’s past record as a tech giant social media platform. It was pointed out that Facebook was considering other endeavors without fixing the problems it had with its present engagements. Also, Libra, according to the Senate has a couple of skeptical partners who have at one point in time or the other, lodged complains if their pessimism of Libra’s success and goals.
Profit Or Non-Profit?
This particular section delivered another blow to Libra’s integrity as to being a nonprofit organization. As the Senate maintained that such a big project like would pay out massive dividends to investors and partners. The issue of Libra being a nonprofit only begged the question. Although might have been difficult to admit, David Marcus responded by admitting that Libra would indeed make money, but surprisingly was still meant to be a nonprofit organization.
Facebook: A Country, Not A Company!
Senator John Kennedy, just as David Marcus was trying to get a hold of himself after having to deal with some difficult situations put to him, concluded that Facebook was proposing to become a country, not a company. This was by the reason of the fact that big techs could build a payment network but not a currency.
In his words,
“We can agree Facebook is not really a company anymore, it’s a country”
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Staff writer at Coingape. Certified cryptocurrency expert and Blockchain journalist covering crypto market analysis and general Blockchain adoption and development.
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