Zuckerberg published his speech in defense of Libra
Today, October 23, Facebook`s CEO published the testimony he is going to give to the House of Representatives Financial Services Committee, saying that Libra was conceived by its creators as a global payment service that will help people send money to those parts of the earth where there`s a certain difficulty with this area. Zuckerberg will testify tomorrow.
The current system is failing them,” Zuckerberg said. “The financial industry is stagnant and there is no digital financial architecture to support the innovation we need. I believe this problem can be solved, and Libra can help.
Zuckerberg warned that the US could lose its financial leadership on the world stage if Libra will not be given the opportunity to start, since in China such an idea has been preparing for implementation for a long time already, and it is going to be launched in the coming months.
He added that Facebook will not launch its cryptocurrency project until it receives an approval from regulators, and will maintain a launch delay until this happens. Zuckerberg emphasized that Libra is in no way going to compete with sovereign currencies or take any part in monetary policy, since this area is wholly owned by central banks.
Zuckerberg expressed his awareness that the regulatory framework on which Libra would be allowed to operate would imply complete non-interference in monetary policy.
Libra is also being designed with economic security and stability in mind, and it will be fully backed through the Libra Reserve.
Zuckerberg even suggested that Libra would even be able to deal with financial crimes more effectively than the current system, noting that law enforcement agencies can analyze illegal activities using the blockchain, where they can verify customer information.
Facebook announced the Libra project in June and still hopes to launch it by mid-2020. However, the project faced a powerful regulatory response around the world, since the number of Facebook`s users is so large that the stablecoin emitted by it may well contribute to the destabilization of the global financial system.