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Libra: Mark Zuckerberg testifies before Congress about embattled cryptocurrency – live Libra: Mark Zuckerberg testifies before Congress about embattled cryptocurrency – live
(30 minutes later)
Congresswoman Ann Wagner of Missouri asks Zuckerberg why major players have departed from the Libra Association in recent weeks.
Wagner said she finds the partners’ departures “highly concerning,” and that she questions whether he is “up to the task of meeting our money laundering and regulatory standards”.
“Because it’s a it’s a risky project and there’s been a lot of scrutiny,” Zuckerberg said of the departures.
McHenry asks Zuckerberg why he chose to base the Libra Association in Switzerland, a diplomatically neutral location, if he plans to comply with US regulation.
“We were trying to set up a global payment system,” Zuckerberg said. “Switzerland is where a lot of the international organizations are. Switzerland has certainly been forward-leaning on wanting to work through systems like this, but one of the things I want to be clear on is that the Libra Association is independent and we do not control it.”
Republican congressman Patrick McHenry of North Carolina has the floor now, asking Zuckerberg when his views on China became more adversarial, after the CEO implied he wants to beat the country to the field by launching Libra.
“My views have evolved,” Zuckerberg said. “I was more optimistic, but now I’m realizing China has some problems, which is why we worked with Beijing bringing fiber optic undersea cables from China to LA along with Google.”
House Financial Services Committee Chairwoman Maxine Waters grills Zuckerberg on the company’s decision not to remove false advertisements from politicians.
“From a business perspective, the very small percent of our business that is made up of political ads does not come anywhere close to justifying the controversy that this incurs for our company,” Zuckerberg said. “So this really is not about money. This is on principle, I believe in giving people a voice. I believe that ads can be an important part of voice.”
Mark Zuckerberg reads his opening statements, arguing in favor of American innovation and saying if the US does not allow the launch of a cryptocurrency, China will beat it to the field.
“China is moving quickly the launch of similar idea in the coming months,” he said.
“Libra is going to be backed mostly by dollars, and I believe that it will extend America’s financial leadership around the world, as well as our democratic values and an oversight. But if America doesn’t innovate, our financial leadership is not guaranteed.”
Waters criticizes Facebook’s failures to comply with existing diversity and security framework, ultimately questioning whether action should be taken against the company to stop it.
She said Facebook failed to release its diversity statistics in the past, and that it was sued by the National Fair Housing Alliance for enabling advertisers to engage in discrimination through algorithms on the platform.
“All of these problems I’ve outlined, and given the scope and the size and reach [Facebook has] it should be clear, while we have serious concerns about your plans to establish a global digital currency that will challenge the US dollar and back, we have also opened up a serious discussion about whether Facebook should be broken up,” she said.
Maxine Waters hits the ground running, listing to Zuckerberg the litany of concerns she and other Congress members have regarding Libra.Maxine Waters hits the ground running, listing to Zuckerberg the litany of concerns she and other Congress members have regarding Libra.
Plans to create a digital currency have caused many concerns “relating to privacy, trading risks, national security, monetary policy, and the stability of the global financial system,” she said.Plans to create a digital currency have caused many concerns “relating to privacy, trading risks, national security, monetary policy, and the stability of the global financial system,” she said.
“I and other Democrats have called for a moratorium on Facebook’s development of this digital currency Libra and digital wallet Libra until Congress can examine the issues associated with a big tech company developing these digital products, and take action,” she said.“I and other Democrats have called for a moratorium on Facebook’s development of this digital currency Libra and digital wallet Libra until Congress can examine the issues associated with a big tech company developing these digital products, and take action,” she said.
Good morning, Kari Paul in San Francisco here, covering today’s hearing, An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors.Good morning, Kari Paul in San Francisco here, covering today’s hearing, An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors.
The hearing will start with opening statements from Representative Maxine Waters, more details to come.The hearing will start with opening statements from Representative Maxine Waters, more details to come.