David Marcus, head of the Facebook’s crypto wallet Calibra, today on July 15, presented his testimony in front of the US Senate, published by the Banking Committee of this legislative organization.
David Markus’s testimony held on behalf of Facebook
On this occasion, Marcus made a statement and explanation on the Libra’s structure and management; also about how the Calibre wallet works, as well as their implications for trade and consumers. He spoke to the US Senate about the future of the cryptocurrency developed by the largest social network in the world and its inevitable part Calibra digital wallet, a project that has struck a blow to criticism of many community members, legislators, and industry leaders.
Starting the Libra Association and following the regulation
Furthermore, Calibra’s first man said in front of the US Senate that no organization should be responsible for Blockchain and Libra Reserve; Instead, they will develop a cooperative approach as the social network Facebook is allegedly working to create the Libra Association. The association will be an independent organization and based on membership. When Libra starts, the role of Facebook in the management of the association will be supposedly equal to the position of other members.
Markus also assured the US Senate that Facebook would not launch the crypto until the company establishes full coordination with all the regulations related to stablecoin and obtains necessary approvals. It would mean that the state legislature would regulate Calibra as a money transmitter. Also, the Federal Trade Commission, the same as the Consumer Protection Bureau, will monitor user protection and data privacy and security issues.
To recall, Facebook’s Calibra digital wallet already filed a license application for state money transmitters in the United States and is also registered with FinCEN as a deal with money services.
Markus for the US Senate: Libra is different from other stablecoins
In his further presentation, Marcus stated that Libra should not be seen as an investment but as a means of payment. Users of this stablecoin will not be able to buy or hold it as shares to gain interest in it later.
Libra is still different from other stablecoins that do not support currencies because they will not have their value fixed to any particular asset. It will be absolutely supported on a one-to-one basis through its own reserves, which will keep currencies in safe assets like cash bank deposits and highly liquid short-term government securities – currencies like the US dollar, the British pound, the euro, and the Japanese yen.
Parallel to publishing an initial testimony in front of the US Senate, a draft law titled “Holding big technology from finance” was released on the Internet, allegedly by the Financial Services Committee of the United States House of Representatives. This document states that a large utility can not be built or managed by a digital resource proposed to be widely used as a medium of exchange, accounting unit, value store or any other related function, as defined in the Federal Reserve Management Board.