Libra, the digital coin of Facebook is going through quite a rough patch. The U.S. lawmakers are bombarding the head of Libra, Mr. David Marcus with the withering questions that are based on the protection of cryptocurrency users.
On Wednesday, he went for a hearing at House Financial Services Committee that was harsh then once he faced before the Senate Committee on Banking, Housing, and Urban Affairs. Looking towards the dark past of the tech giant company involving data breach, lawmakers found it difficult to digest the Facebook decision to dive into financial division.
Rep. Brad Sherman, D-Calif., was the harshest critique on the table as he compared Facebook plans with dark day 9/11. “We’re told by some that innovation is always good,” Sherman said. “The most innovative thing that’s happened this century is when Osama bin Laden came up with the innovative idea of flying two airplanes into towers. That’s the most consequential innovation, although this may do more to endanger America than even that.”
He alleged that Facebook is creating this whole new platform to provide privacy to drug dealers, human traffickers. terrorists, tax evaders,etc. The other Congressmen were less dreadful to Mr. Marcus. They told him that the government regulations are not like Silicon Valley as you cannot work on problems as you go.
Rep. Carolyn Maloney, D-N.Y., said Marcus that “I don’t think you should launch Libra at all because the creation of a new currency is a core government function” “But at the very least you should agree to do this small pilot program first,” he added.
During the hearing, David was asked if Libra is a trading commodity or security and he said it’s “commodity”. While others asked him if it can be compared to Paypal as he served the head of Paypal. He answered that it’s more akin to Paypal.
Rep. Ed Perlmutter, D-Colo., highlighted the tension lawmaker feel over the new currency. According to CBNC, Perlmutter said, “We all have this same question for you and that’s the resistance you’re feeling because we think you’re a bank, but you’re not quite like a bank”. “And if you’re a bank, we regulate the heck out of you because we’ve seen a lot of people lose money where there hasn’t been regulation. So that’s the resistance that I feel, I want to support your innovation I want to support the efficiency that you people believe you’re bringing to the table. But I also don’t want anybody getting hurt here,” he added.
Going forward to the Impact on the U.S. Dollar Mr. Marcus was asked how it impacts the sovereign currencies and in response to that he cleared him out that Libra doesn’t compete with sovereign currencies. During the whole hearing, he was asked how will Facebook benefit from Libra, if people who don’t use Facebook can use Libra and what are the policies.
It was a tough day for Mr. David Marcus but his contentment would be seen when he said “We will improve on the current system”