Facebook will withdraw from the Libra Association if it does not receive approval from the regulators at. This is a statement of Mark Zucke...
Facebook will withdraw from the Libra Association if it does not receive approval from the regulators at. This is a statement of Mark Zuckerberg to the US House of Representatives on October 23 last.
In a hearing with Congress on October 23, Mark Zuckerberg, CEO and founder of Facebook, reiterated the company's commitment to not releasing Libra digital currency according to its plans for until it got "green light" by US regulators.
"Facebook will not launch the Libra payment system anywhere in the world until US regulators approve it." Zuckerberg further emphasized that Libra was created not to replace sovereign currency, but to serve as an online payment system.
The statement was made in a hearing before the House and House Financial Services Committee. That's where lawmakers question the Facebook boss about various aspects surrounding the company's operations. It includes Libra, which executes data and processes hate speech on this social network.
When asked about Facebook's actions if the Libra Association still decided to launch Libra without the consent of the US regulators, Zuckerberg replied: “At that time I believed we would be forced to leave the association. ”. During the hearing, Zuckerberg repeatedly said that Facebook is based in the United States and considers himself an American company. Therefore, they will seek approval and compliance from US regulatory agencies.
Some MPs were skeptical of Zuckerberg's statement, not believing that the Libra Association could exist without Facebook's involvement. They also expressed concern about the fact that Libra is headquartered in Switzerland, and emphasized that such concerns will be greatly relieved if the project is based in the United States.
Referring to the fact that some large companies have left the association, Zuckerberg stated that in the future there will certainly be more companies interested in the project and joining Libra. The Libra Association initially had a total of 28 founding members. However, recently, seven major global companies have decided to withdraw from the association, including PayPal, Visa, Mastercard, Stripe, eBay, Mercado Pago and Booking Holdings.
In the Libra report, Facebook's original plan was to attract about 100 members by the first half of 2020. That's when Libra will debut. So far, only Facebook is the only company that has pledged to invest in the Libra project among the 21 founding members. When Libra was announced in mid-June this year, Facebook said each founding member would have to invest a minimum of $ 10 million, but so far no organization has pledged to invest, according to a report of BBC.
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