Facebook is in the middle of privacy lawsuits and settlements around the globe.
At the same time, the company testified this week about a hot new fight on its hands. This battle centers around the proposed Facebook cryptocurrency called Libra.
Quotes about Facebook Libra cryptocurrency
David Marcus is the Head of Calibra at Facebook. The former president of PayPal testified this week before the U.S. Senate Committee on Banking, Housing, and Urban Affairs. Here are five of the points he made:
1. Facebook is humble. And it is building security into the process:
"We approach all of these efforts with humility and a commitment to engage with experts in law, finance, economics, security, compliance, and blockchain technology, as well as with the
regulators and policymakers who oversee the stability and security of our financial systems."
2. Facebook is giving the U.S. a chance to be a world leader:
"I am excited about the potential that Libra holds, and I am proud that Facebook has initiated this effort here in the United States. 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."
3. Libra is a noble cause:
"Economic empowerment is one of Facebook's core values, and the 90 million businesses communicating with their customers on the Facebook platform can attest to that. We have done a lot to democratize free, unlimited communications for billions of people. We want to help do the same for digital currency and financial services, but with one key difference: We will relinquish control over the network and currency we have helped create."
4. Don't think of Libra like you do Bitcoin or Monero:
"Libra is a payment tool, not an investment. People will not buy it to hold like they would a stock or a bond, expecting it to pay income or increase in value. Instead, Libra is like cash. People will use it to send money to family members in other countries, for example, or to make purchases."
5. Don't worry, governments of the world, Libra is not a competitor to your monies:
"The Libra Association, which will manage the Reserve, has no intention of competing with any sovereign currencies or entering the monetary policy arena. It will work with the Federal Reserve and other central banks to make sure Libra does not compete with sovereign currencies or interfere with monetary policy. Monetary policy is properly the province of central banks."
His statement to Congress also highlighted the group of companies that are collaborating with Facebook to make Libra a reality. It may be a subconscious way of saying, "Do you really want to stop this type of innovation?"
List: companies working to make Libra a reality
Here is the list of companies working on bringing Libra into existence. There are some heavy hitters here, for sure:
• Payments: Mastercard, Mercado Pago, PayPal, PayU (Naspers’ FinTech arm), Stripe, Visa
• Technology and marketplaces: Booking Holdings, eBay, Facebook/Calibra, Farfetch, Lyft, Spotify, Uber
• Telecommunications: Iliad, Vodafone
• Blockchain services: Anchorage, Bison Trails, Coinbase, Xapo
• Venture capital: Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Union Square Ventures
• Nonprofit and multilateral organizations, and academic institutions: Creative Destruction Lab, Kiva, Mercy Corps, Women’s World Banking
Treasury Secretary Steve Mnuchin, for now at least, does not seem to be a fan of what Facebook is trying to do. At a press conference this week he made that very clear.
"The Treasury Department has expressed very serious concerns that Libra could be misused by money launderers and terrorist financiers. We will not allow digital asset service providers to operate in the shadows and will not tolerate the use of the cryptocurrencies in support of illicit activities."
Read it for yourself: Facebook testimony to the United States Senate regarding its proposed cryptocurrency, Libra.
