Mark Zuckerberg, CEO of Facebook, said that plans to launch Libra, a global payment system will remain pending until the US authority approval. The comments put an end to the speculation that the Libra coins could be going live in countries where there is no government repression.
October 23, 2019, | AtoZ Markets – Mark Zuckerberg told lawmakers that they would not be part of the launch of the Libra without US regulator’s go-ahead. In a testimony presented today to the House Financial Service Committee, Zuckerberg addressed several concerns voiced by policymakers regarding Facebook’s blockchain project. He also said Facebook supports “Libra delaying its launch until it has fully responded to US regulatory concerns.”
Zuckerberg pointed out that Libra is not meant to compete with sovereign currencies. Instead, the Libra Association will work with the Federal Reserve and other central banks. This is because to ensure that it does not interfere with monetary policies, he said.
In his statement, the Facebook CEO also emphasized the importance of supporting innovation. He also implies that Libra will help the United States maintain its global position as a financial leader.
Zuckerberg is scheduled for a public hearing before the House Financial Service Committee on Wednesday. The board will ask about Facebook’s cryptocurrency plan and its possible influence on the US financial services and housing sectors.
Libra Cryptocurrency And Calibra Online Wallet
Libra cryptocurrency and Calibra online wallet were to be launched in 2020. But US regulators have argued that too little is known about digital money. And it’s potential to allow money laundering, respect the know-your-customer rules and threaten the privacy of users. French and German regulators have also said they would not allow Libra to launch inside their borders. This could endanger the value of the euro and illegally privatize the money.
This is not the first-time governments around the world have challenged cryptocurrency. The previous year India’s central bank declared a prohibition on the use of bitcoin and other digital currencies by any regulated financial entity because of the associated risks. China also banned the use of some cryptocurrencies while planning the launch of its digital currency.
In his statement, Zuckerberg warned of the risks of not innovating financial infrastructure, which he described as “stagnant”.
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