Mark Zuckerburg plans to tell Congress in the upcoming hearing that Facebook would not be involved in the launch of Libra if the US regulators do not allow them to launch it.
Mark released his written testimony publicly where he plans to give Congress a comprehensive list of pros and cons of Libra, with a detailed explanation of why Libra is the need of the hour for the US. Mark, stating that not all people around the world have access to bank accounts, elaborated that Libra aims to solve these problems by making payments as easy as a touch on the phone or sending a text message. Zukerberg, however, acknowledged that Facebook can not walk this path alone, and needs the full support of regulators for the launch of Libra. He stated:
Facebook will not be part of launching the Libra payments system anywhere in the world until US regulators approve.
Zuckerberg also believes that Libra can help save the financial systems, instead of bringing them down as perceived. “The financial industry is stagnant and there is no digital financial architecture to support the innovation we need.” People need to wait too long for transactions to complete in banks and pay high costs for sending money across borders. Libra aims to solve these problems by bringing in digital innovation in the financial systems.
The downside of not letting Libra launch on this scale would be that the competitor countries who have positive opinions about crypto and blockchain would make projects like these without thinking about the cons and become the leaders of innovation. China, for example, is working on multiple ideas like these and will be launching them in the coming months. Waiting for debate will simply put the US behind China in this field of innovation.
Zuckerberg has acknowledged the reputation of Facebook and he also acknowledges that Facebook might not be the best messenger to launch this application, due to the previous controversies. But over time, Facebook has worked to empower people. Even in their company, they aim to hire 50% of the people who are people of color, underrepresented people or women just to promote empowerment. Libra, also has similar motives. According to Zuckerberg:
Giving people control of their money is important too. A simple, secure, and stable way to transfer money is empowering. Over the long term, if it means more people transact on our platforms, that would be good for our business. But even if it doesn’t, it could help people everywhere.
Since the last hearing, Facebook has been very concerned about the privacy of common people and has improved significantly on this front. According to the CEO, “..we’ve banned advertisers from using age, gender, or zip codes to target housing, employment, or credit opportunities, and we’ve limited interest-based targeting for these ads. This is part of our commitment to support civil rights and prevent discrimination.” He plans the same for Libra where account information would not be used by Facebook and total privacy would be guaranteed.