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David Marcus Testified Before The House Financial Services Committee, Justifying Libra’s Impact

Facebook’s Libra, one of the hot topics in cryptocurrency space is facing various allegations regularly. Representatives, from the United Sates House Financial Services along with the Senate Banking Committee questioning almost every day about the legitimacy of the forthcoming digital asset. In a recent update, Ocasio-Cortez from the House Financial Services mentioned that Libra is corporate-controlled digital money, which has the potential to harm the U.S. financial system and economy. On July 17, C-Span- an American public affairs cable and satellite television  network, has broadcasted the “Hearing on Facebook Digital Currency, Part 1.”

The hearing indicates that the lawmakers and overseers of the U.S are highly concerned by the impending impact of Facebook’s Libra project on consumer, investors, and the American financial system. During the judging process, the lawmakers consistently for over 3 hours cross-examined David Marcus, the Co-Creator of Facebook’s digital currency and its possible implications on the U.S.

Marcus while discussing the impact of Libra with Rep. Ocasio-Cortez mentioned that “sovereign currency should remain sovereign,” on asking his views about Libra, and the currency in general, which is meant for the public good. Further, he mentioned that “Facebook would address the lawmakers’ and regulators’ before launching its product… And it is not his place to determine whether Libra should be a public good.”

The transcript on C-Span further highlighted a few other points which specify the serious apprehensions of the lawmakers’ towards “Libra” digital currency and wallet ‘Calibra”.

1.    Facebook through Libra project in Switzerland trying to create a new global fund to rival U.S. dollar.

2.    The committee members among others are Visa, Paypal, Uber, Mastercard, Specify and many more are not elected democratically and may impose a great threat by overpowering the U.S economy.

3.    Lawmakers’ are worried that Facebook with its far and wide reach with over 2 billion consumers has a strong potential to control the global financial system.

4.    Facebook Libra is proposing government-guaranteed securities which it would hold in Libra reserve that would be governed by Facebook and its partners. This would be a threating impression on the pre-existing government influence and might snatch away the economic power from the government and destabilize the currency (U.S. Dollar) which is under government control.

Cambridge Analytica Case

Further, it is highlighted that Facebook’s record seems neither virtuous nor in favor of the societies. The infamous scandal where Cambridge Analytica is a political consulting firm that allegedly used 50 million users private data, which it purchased from Facebook during 2016, Trump’s election campaign. This shows that the social media giant deceived consumers trust to a large extent among other incidences which are reflected in the C-Span transcript.

There are various allegations which the committee have raised and called Libra is a “currency controlled by an undemocratically-selected coalition of largely massive corporations.”

Facebook’s Libra From Corporate-Controlled Subject To Monetary Policy Issue

Ocasio-Cortez apart from corporate control issue further pointed out towards the issue of monetary policy which was earlier questioned from David Marcus during the investigation process by the Senate Banking Committee.

Previously, in front of the Senate Committee Marcus said that he would be open to accepting 100% of his pay in Libra. On this statement, Cortez cleared that in the history of U.S. “scrip” is a term used for paying in a corporate-controlled currency. She said that “The understanding of his pay instead of a sovereign government could be controlled by a corporation.”

The company scrip is considered as an illegal structure and discluded from considering as a proper medium of payments in the country, by the Fair Labor Standards Act of 1938, she drew the attention in her dialogues.

The complete structure of scrip is mentioned on the Legal Information Institute’s website for Koinpost readers.

Stay tuned for more happening updates! It’s always exciting to have comments from the alerted readers.

Tags: Blockchain News, Digital Currency, Facebook, Libra, Government, JPMorgan, David Marcus,Cryptocurrencies, USA, Congress, Stablecoin, New York, Wells Fargo, Uber, Visa, Mastercard, Paypal, Specify