David Marcus, the head of Facebook’s Calibra, has said the much criticized Libra Project will only be launched after careful scrutiny from the Congress.
The Libra administrators will present its case before the US Congress today after criticisms from top financial institutions around the world. Donald Trump, The US President, also spoke against the advent of Facebook’s Libra last week.
Marcus comment was published on the website of the US Congress Committee on Banking. This is in preparation for his meeting with the lawmakers today.
Sprint Towards Implementation
According to Facebook, the Libra Cryptocurrency will be introduced by 2020. Jerome Powell described the planned scheme as constituting “serious concerns,” The Chair of the US Federal Reserve warns Facebook against a “sprint toward implementation”.
Congressmen have already expressed doubts concerning the stability of Libra which is the same problem facing digital currencies. Others say cryptocurrencies generally promote terrorist funding and fraud, an assertion echoed by the president.
Marcus was quick to dismiss these fears in his preliminary comments. He said:
“Overseeing the Libra Blockchain and the Libra Reserve will be a significant undertaking and responsibility. No single organization can or should be solely responsible for it. We believe a cooperative approach is both warranted and necessary.”
A regulated Cryptocurrency
In addition to this, Marcus disclosed that the project will be handled by Swiss Financial Regulators who are fully prepared to fight against fraudulent activities that could plague the coin.
“We recognize the authority of financial regulators and support their oversight of this project,”
Marcus comment highlights the major points he will be discussing before the US Congressmen today. He will be answering questions from the legislators on Tuesday and Wednesday.
A faction of Democrats has initially asked that the Libra Project be suspended until administrative issues can be addressed.