Mark Zuckerberg Defends Facebook's 'Libra' Currency Plans Before Congress thumbnail

Mark Zuckerberg Defends Facebook’s ‘Libra’ Currency Plans Before Congress

By Blair Morris

November 17, 2019

( WASHINGTON)– Facebook CEO Mark Zuckerberg sustained hours of irritable questioning from lawmakers Wednesday as he protected the business’s brand-new worldwide ambitious task to develop a digital currency while also handling broadening scrutiny from U.S. regulators.

House Financial Solutions Committee’s immediate focus was Facebook’s strategies for the currency, to be called Libra. Zuckerberg took pains to reassure legislators that his company will not move forward with Libra without specific approval from all U.S. monetary regulators.

Still, numerous members of the panel appeared skeptical.

Rep. Maxine Waters, the California Democrat who chairs the panel, stated the Libra job and the digital wallet that would be used with it, Calibra, “raise lots of issues associating with personal privacy, trading dangers, discrimination … national security, monetary policy and the stability of the global financial system.”

The Short Newsletter

Register to get the top stories you require to know right now. View Sample

Additionally, Waters told Zuckerberg, “You have opened a discussion about whether Facebook must be broken up.”

The social media giant has actually triggered public and main anger at every turn, from its supposed anticompetitive behavior to its shift into messaging services that permit encrypted conversations, to its rejection to remove phony political ads or doctored videos.

The separation specter– the worst-case scenario for Facebook and other tech behemoths– has actually been raised by popular politicians, notably Sen. Elizabeth Warren, a leading Democratic presidential prospect.

The Justice Department, the Federal Trade Commission, your home Judiciary antitrust subcommittee and attorney generals of the United States in a number of states are all carrying out investigations of Facebook and other tech giants amid allegations that they abuse their market power to crush competitors.

Zuckerberg was on the defensive at the hearing, his very first testament to Congress because April 2018, parrying criticism however likewise acknowledging lapses. He yielded at one point that the Libra job is “risky,” acknowledging numerous prominent companies such as Visa, MasterCard and PayPal had signed on as partners in the currency’s governing association however have actually just recently bailed.

Under continued criticism of Facebook’s handling of hateful speech and potential incitements to violence on its site, he stated, “We’re not ideal. We make a lot of mistakes.”

Zuckerberg held up China as a strong reason for encouraging development as embodied in the Libra task.

” While we debate these issues, the remainder of the world isn’t waiting,” he said. “China is moving quickly to launch similar concepts in the coming months.”

The Facebook CEO also has mentioned competition from China as an engaging reason against separating the company.

His China argument discovered a prepared echo from some Republicans on the committee, such as Rep. Patrick McHenry of North Carolina, who stepped up to safeguard the Libra task and urge lawmakers not to put “innovation on trial.”

However Democrats, in an unusual tilt, allied themselves with President Donald Trump and his Treasury secretary, Steven Mnuchin, who have openly criticized the Libra plan. Mnuchin and other regulators, consisting of Federal Reserve Chairman Jerome Powell, have actually alerted that the digital currency could be utilized for illicit activity such as cash laundering or drug trafficking.

Zuckerberg touted his optimistic vision of Libra and what it might indicate for individuals around the world who do not have access to savings account.

___

AP Innovation Reporter Barbara Ortutay in San Francisco and AP Banking Press Reporter Ken Sweet in New York contributed to this report.

Contact us at editors@time.com

Learn More

About Blair Morris