Calibra CEO David Marcus has published a written version of his upcoming speeches in the US Congress. In it, he stressed that the activities of the Libra Association consortium will be regulated by the Swiss Financial Market Supervision Authority (FINMA), and the launch of the Libra project will not take place until the doubts of regulators are resolved.
Marcus Testimony 7-16-19 by BlockchainJournal on Scribd
“I expect that the period between today and launch will be the most thorough and deep regulatory review in the history of Fintech. I would like to clarify our position right away: Facebook will not launch the Libra digital currency until all doubts of regulators are cleared and all permissions are not obtained. ”
Nevertheless, Marcus immediately added that the status quo could no longer be maintained. Too many people around the world cannot transfer their money cheaply and quickly. Libra can change that, he said.
The head of Calibra stressed that Facebook has already democratized communications and intends to do the same with financial services. At the same time, the company will give up control over the network that it creates, and will retain the same rights as other members of the consortium.
“Libra is a means of payment, not an investment. People will not buy and hold it as stocks or bonds. ”
Libra’s digital currency will be provided with a basket of fiat currencies (US dollar, British pound and yen), as well as liquid government securities. These assets will be stored by a geographically distributed network of regulated custodians.
“The Libra Association does not intend to compete with sovereign currencies or to interfere in monetary policy. Monetary policy is the patrimony of central banks. ”
The organization intends to obtain a financial services license from FinCEN, as well as comply with AML / CFT standards, Markus added.
“Privacy in the Libra blockchain will be the same as in the already existing blockchains: the information about the sender / recipient, the transaction amount and the timestamp will be public. The association will not collect or store personal data of users. "
Calibra, as previously reported, is creating a digital wallet for Libra, which should allow 90 million businesses on the Facebook platform to establish more direct financial relationships with users of the social network. In this case, Calibra data will not be transmitted to Libra Association or Facebook, so that they are not used for promotional purposes, Marcus summed up.
Calibra will be a fully regulated company under the supervision of the Federal Trade Commission (FTC), FinCEN and the Consumer Financial Protection Bureau. The unit will comply with the KYC / AML / CFT regulations, as well as the US Bank Secrets Act.
Recall that on July 16 and 17 a hearing will be held on Libra in the Banking Committee of the Senate and the Financial Services Committee of the House of Representatives, respectively.
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