Zuckerberg: Libra does not intend to replace sovereign currency and will expand US financial leadership

Original: CNBC , the original author: Salvador Rodriguez

Source: Odaily Planet Daily

Translator: Yu Shunqi

Facebook CEO Zuckerberg will testify against Libra on Wednesday (October 23) at the US House Financial Services Committee. He will tell lawmakers that Facebook-backed Libra cryptocurrencies "will expand the US's financial leadership and our democratic values ​​and oversight around the world."

According to his testimony , Zuckerberg said, “When we discuss these issues, the rest of the world has not waited. China is taking swift action to launch a similar idea in the coming months. Libra will mainly receive support from the US dollar. It will expand the financial leadership of the United States and the democratic values ​​and supervision of the United States worldwide. If the United States does not innovate, it will not be able to guarantee our financial leadership."

Zuckerberg’s testimony was made after a difficult week in the Libra Association. After the departure of Visa, Mastercard, PayPal, eBay, Strible, Booking and Mercado Pago, the membership of the Libra Association was reduced to 21.

When Facebook announced Libra, it said it plans to launch the digital currency in 2020. Since then, the company said it will not launch Libra until it is approved by the regulatory authorities. Zuckerberg reiterated this position in his testimony.

Zuckerberg said, "Although the Libra Association is independent, we can't control it, but I want to be clear: Facebook will not participate in the Libra payment system anywhere in the world until the US regulator approves it."

Zuckerberg also stressed that Libra's future is now in the hands of the Libra Association and not Facebook.

Zuckerberg said, "Designally, we do not expect to lead these efforts forward. The Libra Association has been established, has an appropriate governance structure, and will promote the project from now on."

Zuckerberg also refuted Libra’s claim to replace sovereign currency.

“The last question is whether Libra intends to replace sovereign currency and whether it is appropriate for private companies to participate in this innovation. I want to clarify: Libra is not an attempt to create a sovereign currency. Like the existing online payment system, this is people moving. A way of funding."

However, Zuckerberg did not explicitly explain why when competitors PayPal's Venmo, Apple Pay or Square Cash worked well with existing government-backed currencies, Facebook felt it necessary to propose a new cryptocurrency as part of its system. .