Two days ago, Facebook's digital currency project Libra was officially launched. Before the project was unveiled, the outside world's views on Libra were mostly positive. After the publication of the white paper, Libra not only faced the challenge of the cryptocurrency community, but also caused concern among national regulators.
(Facebook Chief Operating Officer Sheryl Sandberg, left one. Image taken from Bloomberg video)
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Libra releases "eggs": the global regulatory authorities continue to question
The project has been in production for more than a year, with 27 partners, and was immediately criticized by politicians in the US, Australia and Europe. Representatives of some lawmakers in Washington questioned whether they would have proper supervision, while the French finance minister said he was concerned about the increase in money laundering and terrorist financing.
In Australia, the Australian Securities and Investment Commission, the Australian Securities and Investment Commission, urged the $540 billion company to “come over to talk to us” about the currency in the plan.
The Reserve Bank of Australia said it is also closely watching Libra's progress. The country's financial crime regulator AUSTRAC and a privacy agency also expressed concern about Facebook's statement.
The US Senate Banking Committee said in a statement on Wednesday that it had scheduled a hearing on July 16 with a focus on "reviewing Facebook's proposed digital currency and data privacy considerations."
Senate Finance Committee Democratic leader, Senator Sherrod Brown and other politicians expressed doubts about whether the tech giant could protect consumers' financial data, after allegations that the company failed to protect users' personal information.
Facebook: We still have a long way to go
Facebook said that the digital token called Libra will not be available until next year.
Facebook Chief Operating Officer Sheryl Sandberg said on Wednesday that the company’s planned cryptocurrency “has a long way to go before launching,” but policymakers around the world are ready to review it, and US lawmakers plan to hold it next month. Hearings.
On Wednesday, Sandberg said in an interview:
“There are concerns in the regulatory authorities.”
"We have been meeting them all the time. We know that we have a lot of work to do, (the release of the white paper) just want to inform people what our road map looks like, let people get involved and help us do it. ""
Two days ago, the social media giant announced plans to build a new global financial system based on a stable digital currency supported by existing government currencies and securities.
In an interview, Sandberg explained the original intention of Facebook to launch Libra:
“I will explain what this (Libra) is. Obviously, we are a technology company, but at the same time we are a technology company that wants to bring everyone together. Mark (Facebook CEO) wants to let people around the world There are opportunities to speak out, this is unprecedented."
“There are 4 billion people in the world who cannot use the Internet. Through our efforts, the lives of 100 million people have changed. One billion people in the world are excluded from the financial system. What does this mean? This means if If you have $1, you can't find a safe deposit for this money, which is bad for everyone, especially women. There are 100 million women in the world who need remittances, that is, they are far from home and live. And work abroad. They need to remit the money they earn to their families, but in the process, they have to pay a lot of money (20% higher than men). Therefore, we want to use technology to help everyone. ”
When asked how Libra will respond to regulation, Sandberg replied:
“The news we announced the day before yesterday was the establishment of a global association, the Libra Association, located in Geneva. We already have 27 partners, such as PayPal, MasterCard, Visa, Spotify, Uber, etc. and some non-profit organizations. We hope to The cryptocurrency is more inclusive, but we haven't released this cryptocurrency yet, and regulators still have concerns. We've been meeting them all the time. We know we have a lot of work to do, (the release of the white paper) just want to tell people , what is our roadmap, let people get involved and help us do this. We (Facebook) are not responsible for running this project, this is an association and will not report to Facebook."
"We announced this news in advance, we have only published a white paper and announced the formation of the association. This is because we know that we need to work with a lot of people. We know that this is an area that will be strictly regulated. We need to communicate with various people. Meeting, this is what we are currently doing. After that we will release (this cryptocurrency)."
Earlier, Libra leader David Marcus said that he hopes to achieve decentralized governance through the project.
“We use the block link line because at the same time, we will participate in this network and currency governance with nearly 100 international organizations. At this stage, there are 27 partners. We need a decentralized governance model. Because the value agreement network on the Internet should not be controlled by a company."