Facebook Responds US Lawmakers’ Concerns: Launching Libra Needs Regulators’ Involvement

[ChainDD report] July 10 (ChainDD) According to The Hill, David Marcus, head of Facebook’s blockchain and cryptocurrency project Libra, wrote a letter to Maxine Water, chairwoman of US House Financial Service Committee, and other leaders of the Committee, to assure them that Facebook will act appropriately.

Marcus promised he will answer important questions from House representatives in next week’s hearing. He wrote: "We understand that big ideas take time, that policymakers and others are raising important questions, and that we can't do this alone." "We want, and need, governments, central banks, regulators, non-profits, and other stakeholders at the table and value all of the feedback we have received," he made it clear.

Per Bloomberg, Marcus also replied a letter from the Senate banking committee on July 8. Besides abovementioned statement, Marcus revealed Libra’s purpose is to create a cheap and secure way for consumers to move money across the world. Facebook has contacted global regulators to ensure consumer protected and central banks and other authorities’ appropriate impact on Libra. Calibra, Facebook’s subsidiary engages in offering digital wallet and other services for Libra, has applied for state money transmitter licenses and is registered with the U.S. Treasury Department’s Financial Crimes Enforcement Network.

CoinDesk cited Marcus’ letter that he said Libra will respect consumers’ privacy. As to what consumer financial information Facebook has acquired, he said one of Facebook’s subsidiaries unrelated to Libra stored some non-public personal financial information such as payment credentials, which complies with the existing laws associated with transaction. And Facebook didn’t use these data for advertising.

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