Facebook’s CEO Mark Zuckerberg got roasted with questions about the company’s involvement in the new ambitious cryptocurrency project called Libra. Even though the hearing before Congress was predominantly about Libra, the members of Congress used this as an opportunity to ask questions for other topics that included the Cambridge Analytica scandal, the multiple privacy issues that have shattered the social media network over the last few years, and the cybersecurity measures taken for the upcoming 2020 elections.
Facebook under more scrutiny than ever
Mark Zuckerberg’s primary goal is for Libra to receive appropriate US regulatory approval. During the grilling session on Capitol Hill, Zuckerberg confirmed on multiple occasions that Facebook as an entity would not be running Libra, but a separate non-profit organization will manage it. The billionaire confirmed that if Libra fails to receive the appropriate US regulatory approval, Facebook will not have another choice but to leave the governance organization. He said that if they do not obtain all clearances, Facebook will not be part of the nonprofit association. However, this does not mean that Libra will cease to exist as an idea if it fails to pass regulatory approval; it just means that Facebook will not be part of the governing body of Libra.
Zuckerberg questioned on Libra, Facebook’s crypto currency
On multiple occasions during the hours-long hearing, Mark Zuckerberg expressed his opinion that Libra and the solution that it will offer is a necessary innovation for the financial services industry. During his appearance before Congress, the social media mogul confirmed that he believes in the technology, and he realizes that he is not the ideal messenger for this right now. He said that Facebook faced a lot of issues over the last years, and getting the masses to trust him with reinventing banking may be a tad too much to ask, but he appeared before Congress to show his support of the project.
The billionaire made a comparison between SMS and money transfers. In the past, SMS was expensive, but after the technology gained enough traction, the prices decreased significantly. Nowadays, international money transfers would sometimes take days and a whole lot of paperwork and fees. According to Zuckerberg, Libra will have the capability to perform instant international money transfers and significantly decrease the costs associated with sending money.
Libra launch still unconfirmed
Currently, there isn’t a confirmed Libra launch date. The Libra project started by Mark Zuckerberg has failed to receive a lot of backing. Initially, Mark Zuckerberg’s biggest nemesis Tyler and Cameron Winklevoss, also known as the Winklevoss twins, said that they would consider partnering up with Mark Zuckerberg on Libra as the project represents a step towards mass adoption of cryptocurrency. However, they haven’t come through yet as they are probably in the wait to see if the new coin will manage to obtain US regulatory approval clearance.
After the congressional hearing, Bitcoin price plummeted to the lowest level since June as cryptocurrencies came under fire during the congress hearing. Whatever the outcome, Libra will most likely become a reality, and crypto will slowly but steadily continue to enter people’s lives.
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