Beijing time on the evening of July 17 to the early morning of the 18th, following the first Libra hearing held by the US Senate on the 16th, the US House of Representatives conducted the second Libra hearing, and the head of Facebook Calibra team David Marcus again A hearing will appear and a question will be accepted. The senator of the previous day conducted a more than two hours of soul torture on Marcus, and today’s House hearings lasted more than five hours. Babbitt’s live broadcast of the hearing was The wonderful views of the hearing were reported in real time.
The first highlight of the hearing may be the opening speech of the hearing by Patrick McHenry, vice chairman of the US House Financial Services Committee, who said:
- Libra's detailed roadmap is open: developers focus on the Libra main online line
- Research Report | 360-degree explanation of Libra's mechanism, path and impact
- Zuckerberg's 6-hour hearing is a full review: criticism of the controversy coexists, creating "imaginary enemies" holding tight supervision of the thigh
- Ba Shusong, Chief Chinese Economist at HKEx: Libra will make some economies increasingly dependent on fiscal policy
- Libra hearings are full of gunpowder: it is difficult for regulators to trust Facebook
- Facebook holds high "Libra" Bitcoin market rises
"Washington must avoid becoming a place to stifle innovation. We can't choose to ban because we can't understand technological innovation for the time being. In fact, today is not Facebook, change has come, blockchain technology is real, Facebook is just entering this new world. This fact is confirmed. Nakamoto's bitcoin is an unstoppable force, and we should not stop this innovation, and the government cannot stop this innovation."
In the next five hours, members of the House of Representatives began a wheel battle against Marcus. Here are some highlights:
Member: How do you work with regulators? The committee doesn't know what role does Facebook have for 28 members?
Marcus: It is mainly the proper supervision needs, and it is also the spirit of our release of the white paper. Libra is also working hard to cooperate with countries such as G7 and Switzerland.
Members: The countries that are sanctioned often use digital currency. How does Libra control its use in these countries?
Marcus: Regardless of whether Libra is online or not, there will always be other digital currency networks, but we are committed to working with regulators.
Member of Parliament: Many third world countries have very strict monetary policies that do not allow consumers to access foreign currencies. How does Libra solve this problem?
Marcus: This requires a country and a country to solve. There are many countries that you have said. Some countries have very strict monetary policies. This requires different measures. I want to emphasize that any wallet created based on the Libra network. All can interact with other wallets to provide network value, we don't have to be the only Libra wallet, we have our own wallet in some areas.
Member: Libra is involved in holding user funds. Is this not a banking service?
Marcus: Libra does not involve banking services, but focuses on payments, which is the same as PayPal and Square Cash.
Marcus once again stressed: "No one will invest in libra; from the Howell test, libra is not a security, it is a payment tool."
Voice of criticism
Rep. Sherman: The strength of the United States is more in the dollar than in the military. Speaking of cross-border payments, transfer, let us do it in dollars; when it comes to people who don’t have bank accounts, cryptocurrencies are illegal in India, you can’t do it; Zuckerberg can’t print money himself, Zach Berg is now plagued by privacy issues. We need Zuckerberg to come here. We want to tell him that if cryptocurrency is used to finance terrorism to harm the United States and violate the privacy of American citizens, even 100 lawyers will be useless to protect them.
People will call this thing Libra, people will call it ZuckBucks. So we need Zuckerberg to sit here, Libra's damage to the United States is comparable to 9/11. If Libra is used for terrorist attacks, 100 lawyers each charging a fee of $20,000 will not be enough to protect Zuckerberg from the anger of the American people.
Can Facebook increase its control over the Libra network by acquiring members of the Libra Association?
Member: According to you, Facebook has a vote in the Libra Association. If Facebook acquires a member of the Libra Association, does Facebook have more control over Libra?
Marcus: No one in the Libra Association can get more than one vote (1%).
Chinese companies, Alipay, WeChat are mentioned
Member: “Will Libra become an Alipay, WeChat payment, or a PayPal competitor?”
Marcus: We have a lot of wallets and networks that will be their competitors.
Member: Will Chinese companies become members of Libra?
Marcus: This is determined by the Libra Association. One principle is that if Libra is not available in a country, then the country's business should not be run as a member of the Libra Association. Anyone can join, but meet the standards set by Facebook and pay a minimum of $10 million.
How does Facebook make money through Libra? (I finally talked about the point)
Member: How does Facebook make money through Libra?
Marcus: There are two ways: 1. Billions of people can trade, can promote small business expansion, and indirectly promote the development of Facebook advertising business. 2. As time progresses, if we win the trust of users using Calibra wallets, we will provide a variety of services, such as lending, and so on, and establish partnerships with financial institutions.
Marcus: No matter whether Libra will start or not, there will be other networks.
Marcus: The Libra Association is in Switzerland but will register with FinCEN and will comply with all AML and KYC rules.
Marcus: LIbra is not an ETF, although there are some operational similarities, because Libra is a payment tool, no one will invest in Libra. It is a stable currency. .
Marcus: We have open source, it is no longer ours. It is now part of the community, they will help build the code, and we will abandon control of the code base and the network through this process. Unless officially verified, the compiler will not execute the code, and the Libra Association will have guidelines to outline which code can be released and which code cannot be released.
Marcus: "According to Swiss law, if we make money on Libra's business, we will definitely pay taxes."
Marcus: There is currently no plan to use Libra for lending, but I think some banks may do this, but not Calibra.