The first hearings about Libra, Facebook's stablecoin, were held yesterday in the U.S. Congress. Ihodl has compiled the most relevant statements by Libra's director David Marcus. We tell you everything you need to know about the Congress hearings and what is expected to happen.
Main statements on Libra
- The U.S. must "unconditionally" lead the process of developing a regulation for the crypto industry.
- Libra must comply with all requirements established by the U.S. law and its launch will not take place until all regulatory concerns are satisfactorily addressed.
- "Don't trust Facebook."
- Calibra will not sell or monetize user data without their explicit consent.
- Libra's revenue model will be based primarily on e-commerce.
Questions that Marcus has failed to answer
However, the director of Facebook's crypto project has failed to give a satisfactory answer to some of the questions he has been asked during the hearing:
- Will Facebook collect information regarding the transactions managed by the Calibra wallet?
- How much money has Facebook spent to develop Libra?
- Why has the Libra Association been categorized as a non-profit organization when its members actually receive benefits?
- How will Libra fight against fraud?
- Why has Facebook decided to register Libra in Switzerland instead than in the U.S.?
What is next
Bitcoin price has dropped shortly after the start of Facebook's hearings in the Congress; its price fell from $10,750 to $9,500 this morning.
G7 finance ministers are meeting today near Paris in order to discuss the Libra project. Olaf Scholz, Germany's finance minister, said yesterday that regulators all over the world should do everything they can to make sure that digital currencies like Libra do not become a threat to financial stability and consumer rights.
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