Facebook Assures Senate Committee That They Will Play by the Rules
David Marcus, the head of Calibra, wrote a letter to the House Financial Services Committee solidifying Facebook’s stance that they will ensure customer privacy and are taking their time to roll out Libra, allowing it to be done correctly, as reported by The Hill. Earlier this month, Marcus took to social media to address misconceptions about Libra, July 9, 2019.
Response to Lawmakers
In a letter dated July 3, 2019, the head of Calibra defend Libra in front of the House Financial Services Committee by vowing to answer all their important questions. Marcus gave the representatives a personal assurance that Facebook and the rest of the Libra consortium are determined to carry out Libra in the best manner possible.
Facebook has been at the center of a privacy scandal this year, and many lawmakers, as well as ordinary citizens, were wary of their plans to launch a private currency. They have been criticized for their data collection practices and infringing on user privacy.
Lawmakers asked Facebook to halt further development of Libra until they’ve had sufficient time to review the structure of the network and backend processes for identity management.
Marcus told the committee that Calibra knows big ideas like this take time to roll out, and the support of policymakers is a crucial layer that is required for a successful implementation. He further reiterated that they would take all necessary steps to ensure that regulators were able to comprehend the entire dynamic of the network.
Marcus also called for relevant stakeholders to give them feedback as it is valuable to the development process. It was also revealed that Libra Association, a Swiss nonprofit, will operate the cryptocurrency.
Libra Will Work with the Current System, Not Against It
The comments from David Marcus proves that Facebook does not plan to challenge the sovereignty of a nation and wants to work with various regulators and central banks to ensure they don’t step on anyone’s toes.
While China and India are apprehensive to Libra on monetary policy grounds, Facebook has made it clear that they will only launch Libra in countries where regulations allow them to do so.
Now that it’s near certain that Libra will work hand in hand with the traditional financial system, it’s safe to assume it will have a system like PayPal but will allow for easier access to the network, which is essentially a permissioned blockchain with a native token.