Facebook Libra: Facebook will launch its Libra cryptocurrency wallet only through Messenger and WhatsApp and will not integrate competitor wallets, Calibra Project head David Marcus told the US Senate today.
Senator Brown said that “Facebook is dangerous!” while others asked for more information about the risks of the Libra digital currency.
Libra will be interoperable, so users can send and receive money to other wallets, and Marcus committed to data portability, so users can switch entirely to a competitor.
But integrating Facebook's Libra wallet into leading messaging apps could give the company a significant advantage over other banks, PayPal, Coinbase or any other digital wallet developer.
Other important points from the hearing “Examining Facebook's Proposed Digital Currency and Data Privacy Considerations” are the following statements by Marcus:
- The U.S. should “lead” the world in building rules for crypto investments
- The Calibra Project chose to be based in Switzerland “so that it cannot escape any oversight responsibility.”.
- “Yes,” Libra will comply with all US regulations and will not launch until all concerns of US lawmakers are addressed
- “You don’t have to trust Facebook,” because it is one of 28 members out of a possible 100 or more members of the Libra Association and will not have any special privileges.
- “Yes, I would accept compensation from Facebook in the form of Libra” as a sign of confidence in the currency
- Facebook's basic revenue model around Libra is that e-commerce will lead businesses to spend more on Facebook ads
And we left the best for last:
When repeatedly asked why Facebook is pushing so hard to launch Libra, Marcus said that blockchain is inevitable and that if the US does not lead in its development and regulation, the technology will come from places “that our national security does not allow,” such as China.
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