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US congress investigates Facebook Libra Project and partners defend

Redwan Eid | Jul. 18, 2019
US congress investigates Facebook Libra Project and partners defend

July 18, 2019 | AtoZ MarketsIn the latest Financial Services hearing about the Facebook Libra project, U.S Congresswoman Alexandria Ocasio-Cortez addressed Calibra wallet CEO David Marcus, asking “Why should these activities be consolidated under one corporation?”

As Marcus answered saying the Coin is governed by members chosen accordingly, Ocasio-Cortez asked in return whether those members were elected “democratically” or not, naming the coin as “a currency controlled by an undemocratically-selected coalition of largely massive corporations.”

Referring to what the coin’s CEO had previously stated, Ocasio-Cortez continued digging into the an issue of monetary policy, addressing Marcus: “You stated yesterday in front of the Senate Committee that you would be open to accepting 100% of your pay in Libra. In the history of this country, there is a term for being paid in a corporate-controlled currency … It’s called ‘scrip.’ The idea that your pay could be controlled by a corporation instead of a sovereign government. Do you think that there is any risk here? We’ve seen from scrip, to the issues with how Facebook handled our elections, we’re seeing a destabilizing in our public goods.”

The New York congresswoman further questioned the project’s lead on how he sees the power limit of the coin, for whether Libra and “currency in general” should be a public good or not. Explaining that he is not in the position of determining that, Marcus said that “sovereign currency should remain sovereign,”

It is worth mentioning that Facebook Libra has stirred controversy amongst financial watchdogs and central banks, where the latter have shown noticeable tendency of rejecting it, amid fear from the coin becoming a sovereign currency and dominates the other currencies.As previously reported by Cointelegraph, JPMorgan Chase CEO Jamie Dimon claimed that Libra will not be a threat to the financial giant in the foreseeable future.

Facebook’s cryptocurrency project Libra will not be a threat

On the defending side, Jamie Dimon, CEO of global financial services firm JPMorgan Chase, pointed out to that Facebook’s cryptocurrency project Libra does not constitute a threat in the near future.

“To put it in perspective, we have been talking about blockchain for seven years and very little has happened. We are going to be talking about Libra three years from now,” commented Dimon to analysts in a phone call, as per the CNBC.

On the legal side, Dimon stressed that any new effort will have to comply with the industry’s Anti-Money Laundering provisions, saying, “We don’t mind competition. The request is always going to be the same: We want a level playing field. And governments are going to insist that people who hold money or move money all live according to rules where they have the right controls in place; no-one wants to aid and abet terrorism or criminal activities.”

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.