Facebook representatives will take part in the meeting of the Senate Committee on Banking, during which they will answer questions from legislators concerned about the company's plans to create its own digital currency. About this writes Reuters .
The hearing will be held on July 16 and will be devoted to the launch of the Libra project and the associated risks, including the security of users' personal data, the committee said on Wednesday, June 19.
The names of the witnesses who can be called to the meeting are not disclosed at this stage, but a Reuters source familiar with the situation claims that David Markus, the head of the blockchain Facebook, will be among the invitees.
Recall, the white paper of the Libra project and the Calibra mobile wallet, which allows you to send tokens via the Facebook Messenger and the WhatsApp application, Facebook introduced on June 18 . The cost of Libra will be tied to the reserve of various assets, and the network will be managed by the non-profit organization Libra Association.
It is also expected that at the initial stage, Facebook will not charge transaction fees in an effort to make payments as accessible as possible. However, the company reserves the right to change these rules in the future.
Later, David Marcus said that in order to prevent crime, as well as to comply with the requirements of regulators, Libra would share information about users with the authorities.
Nevertheless, almost immediately, member of the US House of Representatives Maxine Waters called on the social network to stop working on the Libra project, calling the new initiative "another example of uncontrolled Facebook expansion."
Representatives of other countries also responded to the Facebook initiative. Thus, French Finance Minister Bruno Le May said that the Libra token should not and cannot become a sovereign currency, while the Governor of the Bank of England Mark stressed that the project must meet the "highest standards" in world regulation. He also noted that the UK Central Bank intends to “very carefully” study the Libra cryptocurrency together with various regulators, including the G7 countries, the Bank for International Settlements, the International Monetary Fund, and the Council on Financial Stability.
Meanwhile, the chairman of the State Duma Committee on the Financial Market, Anatoly Aksakov, said that cryptocurrency from Facebook in Russia is not only not legalized, but will also restrict foreign platforms through which it can be purchased.
Note that also on Wednesday the chairman of the governing board of the US Federal Reserve Jerome Powell said that Facebook representatives had already spoken to the Fed regarding the launch of the Libra project.
“I think Facebook has contacted a large number of regulators in the world and supervisors to discuss their plans. We also enter that number, ”said Powell.
The head of the Fed said that he was not concerned about the possible influence of Libra on US monetary policy. According to him, digital currencies are unlikely to have such a strong influence on central banks.
“There are potential benefits, potential risks, especially if this currency becomes widespread. We will place high demands on them if they really decide to develop something, ” added Powell.
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