Facebook’s CEO, Mr. Mark Zuckerberg, to testify before Congress on Wednesday

Facebook has been under government scrutiny for its recently announced Libra cryptocurrency project and for potentially risking the consumer data at large. Mr. Mark Zuckerberg, the CEO of Facebook has been called to testify on Wednesday before the House Financial Services Committee. The CEO had previously cleared his stance that he wishes to highlight the potential of Libra cryptocurrency to the lawmakers, in sustaining America’s leadership in the world of Finance.

Libra Cryptocurrency Will Be Backed By U.S Dollar

He has further stated that while the United States of America is struggling with the ongoing debates, other regions of the world such as China is already proceeding with its plan to digitalize its currency. Mr. Zuckerberg desires to reassure the regulatory bodies that the Libra cryptocurrency will be backed by the U.S dollar for the most part. Without innovation, he remarked, the financial leadership of the U.S will be threatened.

The Libra Association has been on a rocky ground for the past few weeks. With major partners like PayPal, MasterCard, Visa, Stripe, eBay, etc. announcing their departure, the partners have now been reduced to 21. As per the prepared remarks of Facebook’s CEO, the Libra association is focused on satisfying the regulatory concerns before it moves ahead with the realization of the project.

Mr. Zuckerberg has also reiterated that the Libra Association is an independent entity that is not under the control of Facebook per se. It has its own governance that will be directing the operations from here on with Facebook not assuming the role of leadership for the Libra Association.

Libra Cryptocurrency Doesn’t Aim At Replacing Sovereign Currency

The CEO’s prepared remarks also highlight that the Libra cryptocurrency is by no means a threat to the sovereign currency. According to Mr. Zuckerberg, it is not inappropriate for private companies to be involved since the Libra cryptocurrency is not an attempt to offer an alternative to the sovereign currency. Much like the other online payment platforms, Libra aims at making it convenient for people to transfer money.

What concerns the government and the regulatory bodies, however, is the lack of explanation from Facebook as to why did it feel the need to launch a new cryptocurrency when similar systems like Apple Pay, PayPal’s Venmo, and Square Cash are already in place and are well-integrated into the current financial system of sovereign currency.

Further details are expected to be made public when Mr. Zuckerberg appears to testify before Congress later in the day, October 23^rd, 2019.