Ahead of Test hearing before US senate committee on July 16, Calibra’s CEO David Marcus released his prepared testimony which quickly revealed few crucial aspects concerning Libra.
Libra v/s US Regulators
Mr.Marcus who is currently heading Facebook’s Calibra wallet has released 7 pages long testimony document, entitling “Hearing before the United State Committee on Banking, Housing, and Urban Affairs”. There are two days of hearing set for Libra Testimony – wherein the day one, July 16 hearing will be live-streamed on the Senate Banking Committee’s website.
While the initial phases of the paper state Facebook’s vision behind launching Libra, Libra Association, Libra Reserve, partners associating with Libra association and more – it quickly adds its expectation with the regulatory regime.
However, the social media giant had initiated its Libra effort in the United States but the US Regulators – so far – has raised serious concerns over the launch of Libra. In this testimony document, David Marcus mentioned that they expect Switzerland Govt to regulate Libra because, according to Mr.Marucs, if not America, other countries will.
I am proud that Facebook has initiated this effort here in the United States, Marcus writes. I believe that if America does not lead innovation in the digital currency and payments area, others will. If we fail to act, we could soon see a digital currency controlled by others whose values are dramatically different.
As Coingape earlier reported, Facebook is opting Geneva, Switzerland as the headquarter for Libra Association, Mr.Marcus detailed that “the company had preliminary discussions with Swiss Financial Markets Supervisory Authority (FINMA) and expect to engage with them on an appropriate regulatory framework for the Libra association”. Further, it reads that;
To be clear, the Libra Association expects that it will be licensed, regulated, and subject to supervisory oversight. Because the Association is headquartered in Geneva, it will be supervised by the Swiss Financial Markets Supervisory Authority (FINMA). It continued adding, the Association also intends to register with FinCEN as a money services business.
Although the testimony is scheduled for today, Tuesday, July 16 at 10.am ET, its predicted that committee might first address Libra and the testimony Marcus shared ahead of the hearing and later the privacy probably become the center of the whole topic.
US Regulators v/s Facebook’s Privacy Measures
Concerning about privacy, Marcus states that the first-ever product to be launched will be “Calibra wallet” and as such the financial information of the users will not be shared with Facebook, Inc. Further, it added “as a result, it cannot be used for targeting”, whereas “the vision will especially be enabling the unbanked and underbanked to take part in the financial ecosystem”. Moreover, it mentioned;
But we expect that the Calibra wallet will be immediately beneficial to Facebook more broadly (in the form of advertising the opportunity for business and transact directly ) That increased usage is likely to yield greater advertising revenue for Facebook.
Besides all these details, Mr.Marcus noted another point in the financial section of testimony which might be a center of attention for Senate committee. While writing about the privacy and security of personal information, Mr.Marcus assured that Facebook will not be involved in user’s data, except in limited circumstances;
And, except in limited circumstances, such as preventing fraud or criminal activity and complying with the law, Calibra will not share customers’ account information or financial data with Facebook unless people agree to permit such sharing.
As for now, the result of testimony is still not available but Mr.Marcus already explained what and how he will be testifying Libra in front of Senate Committee.
You can check the result of testimony here – https://www.banking.senate.gov/hearings/examining-facebooks-proposed-digital-currency-and-data-privacy-considerations
Image Source – FT