- Libra token offers an innovation upper-hand to the US to bolster its global financial superiority.
- Facebook will only be part of a US-regulated Libra project.
Facebook’s CEO, Mark Zuckerberg is expected to testify before Congress on Wednesday on the launch of the Libra Association and the development of the Calibra wallet. The social media giant head is expected to defend the launch of Libra Association and its 21 member commission, quash fears of Libra replacing sovereignty of monetary policies, discuss issues on financial data privacy and delay the planned launch of the project if US regulators are not on board by 2020.
According to the testimony addressed to the U.S House of Representatives’ Committee on Financial Services by Mark Zuckerberg released on October 23, the Facebook CEO will go before the committee to defend Libra’s planned launch in mid-2020.
Facebook’s chief will tell Congress to begin plans to regulate cryptocurrencies – more so global stable coins – in order to keep their financial supremacy and avoid getting left behind in innovation by China and other global superpowers. Mark said,
“I believe it [Libra cryptocurrency] will extend America’s financial leadership as well as our democratic values and oversight around the world. If America doesn’t innovate, our financial leadership is not guaranteed.”
US regulators approval key to Libra launch
On the subject of regulation of Libra, Mark affirms Facebook is not trying to circumvent any regulation in the US. A number of critics have come forward claiming the token will be launched in over 30 approved jurisdictions if the US regulators keep their ambiguous status on regulating stable coins. However, according to the testimony sent to Congress, US regulators hold the key to Libra’s launch.
The letter reads,
“Facebook will not be a part of launching the Libra payments system anywhere in the world unless all US regulators approve it. And we support Libra delaying its launch until it has fully addressed US regulatory concerns.”