In a testimony before Congress scheduled for later today, Facebook CEO Mark Zuckerberg is going to admit that the social media company is not the “ideal messenger” for Libra.
The written testimony circulated before a day of Zuckerberg’s appearance also stated that the proposed digital currency would bring financial stability to the 1.7 billion unbanked people across the globe.
The project is aiming to provide money transfer services to its users and will not try to compete against any sovereign currency.
“The current system is failing them,” Zuckerberg noted. “The financial industry is stagnant and there is no digital financial architecture to support the innovation we need. I believe this problem can be solved, and Libra can help.”
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The Chinese competition
He will also warn that if Facebook fails to launch Libra, the Chinese central bank will capture the market with a similar digital currency.
“I believe this is something that needs to get built, but I understand we’re not the ideal messenger right now. We’ve faced a lot of issues over the past few years, and I’m sure people wish it was anyone but Facebook putting this idea forward,” the written testimony added.
He is in favor of delaying the scheduled launch of the project in mid-2020 until Libra is cleared by the US regulators. He also assured that the social media company would not launch the digital currency in other parts of the world without US approval.
Facebook’s past mishaps with users’ data has become a primary concern to trust the company with the financial data of billions of Libra users. Zuckerberg, however, will also assure that Facebook will not lead any efforts regarding the digital currency. Rather, it is only a single entity in the 21-member Libra Association.
“We expect the regulatory framework for the Libra Association will ensure that the Association cannot interfere with monetary policy. Libra is also being designed with economic security and stability in mind, and it will be fully backed through the Libra Reserve,” he will add.