Facebook founder Mark Zuckerberg has tried before US MPs to dispel concerns about the plans for the global digital currency Libra. Facebook will launch the digital money only after all regulatory concerns in the US have been removed, he said at a congressional hearing.
At the same time Zuckerberg admitted mistakes. He understands that Facebook after the scandals and criticism in recent years has a difficult position as the originator of the project. "I understand that I'm not the ideal messenger for that right now," he said. "We've had a lot of problems over the past few years and I'm sure people want anyone else to come up with the idea, just not Facebook."
According to Facebook, the digital currency Libra will initially be used for money transfers across national borders - later also for paying for purchases. The idea is that Libra can be purchased with established currencies like Euros or Dollars. The money should be used one to one to hedge the digital currency.
Zuckerberg warns of China's ambitions
Among other things, regulators and politicians still see unanswered questions about measures against money laundering and terror financing. At the same time, they also fear a possible destabilization of the established financial system when large amounts of money are exchanged in Libra and back. After the criticism, well-known partners from the financial industry such as Mastercard, Visa and Paypal withdrew from the Libra project.
The recently founded Libra Association based in Switzerland, which is to administer the new currency, is independent, Zuckerberg emphasized. At the same time he assured: "Facebook will not be part of a launch of Libra anywhere in the world until the US regulators have given their consent."
Zuckerberg warned US MEPs not to let China dodge the development of a digital currency: "As we debate, the rest of the world will not stand still." If the US does not participate in innovation, the country's leadership in the financial industry is in jeopardy.
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Several MPs sharply criticized Libra. Democrat Brad Sherman warned that Libra would become the right currency "for those who do not like the dollar" - such as drug dealers or tax evaders. And his party friend Nydia Velázquez wanted to know how to be confident that Facebook would keep the data on Libra transactions separate after a similar pledge had been taken after the acquisition of WhatsApp.
How Ocasio-Cortez drove Zuckerberg to a corner
Prominent Democrat Alexandria Ocasio-Cortez used her five-minute poll to address Zuckerberg on Facebook's privacy issues and the spread of "fake news". She went hard on the Facebook boss, who was obviously cornered.
Among other things, the politician from Zuckerberg wanted to know whether Facebook removes lies or not remove. "That's a simple yes or no question," added the Democrat. Zuckerberg did not want to give a specific answer.
Here is @ AOC's full questioning of Mark Zuckerberg.
"Could I be targeting Republicans in primaries saying they're voted for the Green New Deal?" pic.twitter.com/VrGQw7UzIW
To make it more concrete, Ocasio-Cortez hypothetically asked: "May I run ads on Facebook stating that the Republicans voted for the Green New Deal?" She referred to a political initiative for more environmental protection, which had been rejected in March, among others, by all Republicans in the US Senate. Zuckerberg first said that he had not understood the question, and then replied that he did not know the answer from his head. "Probably," he added after a bit of hesitation.
