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The US Senate Banking Committee released opening statements by David Marcus, head of Calibra's cryptographic wallet on Facebook, on July 15. These statements will precede the hearing of the Libra project on cryptocurrency tomorrow in the Senate, in which Marcus will testify.
In his testimony, Marcus raised the issue of Facebook's next publication on Stablecoin Libra and its associated digital wallet, Calibra, which had already drawn criticism from community members, legislators, and key industry players. Marcus commented on the structure and management of Libra and Calibra and their implications for trade and consumers.
Marcus writes that no single organization should be responsible for the Balance Blockchain and Balance Libra; instead, there should be a cooperative approach. For example, Facebook is apparently working on the creation of the Libra Association, an independent membership organization. Once Libra is launched, the role of Facebook in the management of the association will be obviously equal to that of the other members.
According to Marcus, Facebook will not launch Libra until the company resolves issues related to stablecoin regulation and gets the appropriate approvals. Marcus continued:
"The state's financial regulators will regulate Calibra as the issuer of funds, while the Federal Trade Commission and the Office of Consumer Financial Protection will take care of consumer protection, data privacy and security. Calibra has filed for issuer license applications in the United States and is also registered with FinCEN as a money services business. "
Marcus further stated that Libra was a payment tool and not an investment, which means that users would not be able to buy or keep it as an action to earn interest at a later date. According to Marcus, Libya also differs from other currencies backed by currencies, as its value will not be fixed to any particular asset, specifying:
"Libra will be fully secured individually through the Libra Reserve, which will hold a basket of currencies in safe assets such as cash deposits and highly liquid short-term government securities. The US dollar, the pound sterling, the euro and the Japanese yen will be among these currencies. "
Yesterday, a bill entitled "Preventing the Use of Advanced Technology in Finance" appeared online, apparently from the Financial Services Committee of the US House of Representatives. The bill reads as follows: "A large platform utility can not establish, maintain or exploit a digital asset intended to be widely used as a medium of exchange, unit of account, store of value or any other similar function, as defined by the Board of Governors of the Federal Reserve. "
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