Facebook Blockchain Head: Libra Won’t be Launched until Regulators Approve
[ChainDD report] July 16 (ChainDD) In his prepared testimony before the US Senate Committee on Banking, Housing, and Urban Affairs, David Marcus, head of Facebook blockchain and its cryptocurrency project Libra, said: “I want to be clear: Facebook will not offer the Libra digital currency until we have fully addressed regulatory concerns and received appropriate approvals.”
As to Calibra, a Facebook subsidiary that engages in offering Libra blockchain’s financial services, Marcus claimed that Facebook doesn’t “expect Calibra to make money at the outset, and Calibra customers’ account and financial information will not be shared with Facebook, Inc., and as a result cannot be used for ad targeting.” Calibra’s first goal is to create utility and adoption, enabling people around the world— especially the unbanked and underbanked—to take part in the financial ecosystem.
Marcus introduced the Libra Association which has 28 initial members including Facebook will be supervised by the Swiss Financial Markets Supervisory Authority (FINMA). Facebook had preliminary discussions with FINMA and expect to engage with them on an appropriate regulatory framework for the Libra Association. The Association also intends to register with the US Financial Crimes Enforcement Network (FinCEN), a bureau of the US Department of the Treasury that seeks to combat money laundering and other financial crimes, as a money services business.
Marcus said Jerome Powell, Chairman of the US Federal Reserve, has made clear that the process for reviewing Libra needs to be patient and thorough, rather than a sprint to implementation. Facebook strongly agrees his stance. Marcus expected that Libra will receive the broadest, most extensive, and most careful pre-launch oversight by regulators and central banks in FinTech’s history.