Facebook founder and CEO Mark Zuckerberg arrives to testify after a break during a joint hearing of the Senate Committee on Commerce, Science and Transportation and the Senate Judiciary Committee on Facebook on Capitol Hill in Washington.
Saul Loeb | AFP | Getty Images
Facebook CEO Mark Zuckerberg will testify before the House Financial Services Committee on Wednesday, telling lawmakers that the Facebook-backed cryptocurrency "will expand America's financial leadership, as well as our democratic values and oversight of "As we discuss these issues, the rest of the world is not waiting. China is rapidly moving to launch similar ideas in the coming months," Zuckerberg said in his prepared remarks. "The scales will be supported mostly by dollars, and I believe they will extend America's financial leadership, as well as our democratic values and oversight around the world. If America does not innovate, our financial leadership is not guaranteed. "
Zuckerberg's testimony comes after a rough few weeks for Libra, which is the group that manages the library's cryptocurrency. The Libra Association is down to 21
When Facebook announced the library, the social media company said it planned to release the digital currency in 2020. Since then, the company has said it will not release Libra until it has received regulatory approval. Zuckerberg reiterated this position in his prepared remarks.
"Although the Libra Association is independent and we do not control it, I want to be clear: Facebook will not be part of the launch of Libra's payment system anywhere in the world, while
in his notes, Zuckerberg also emphasized. that the future of the library's cryptocurrency is now in the hands of the Libra Association, not Facebook.
"By design, we do not expect to lead this effort forward," Zuckerberg said. "The Libra Association has been created, has a governance structure in place and will manage the project from here on out.
Zuckerberg also denied that the library was an attempt to replace a sovereign currency.
" Finally, there is the question of whether the library is intended to replace the sovereign currency and whether it is appropriate for private companies to participate in this type of innovation, "he said." I want to be clear: this is not an attempt to create a sovereign currency. Like existing online payment systems, this is a way for people to transfer money. "
However, Zuckerberg did not clearly explain why Facebook felt the need to offer new cryptocurrency as part of its system when competitors such as Venmo, Apple Pay or Square Cash PayPal functions perfectly with existing government-backed currencies.
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