Facebook set for grilling on Libra cryptocurrency

Facebook's Libra cryptocurrency is already facing being outlawed

Facebook's Libra cryptocurrency is already facing being outlawed

Head of Messenger and Vice President of Messaging Products at Facebook David Marcus will take to the stand to face questioning from government officials on the company's plans.

For a panel about a proposed cryptocurrency, Tuesday's Senate Banking Committee hearing was notably light on crypto talk. Also Tuesday, a House Judiciary subcommittee was extending its bipartisan investigation of the market power of Facebook, Google, Amazon and Apple.

Trump said last week that companies issuing cryptocurrency, including Facebook, should be subject to banking regulations.

"Treasury has been very clear to Facebook, to bitcoin users and other providers of digital financial services that they must implement the same anti-money laundering and countering financing of terrorism, known AMLCFT safeguards as traditional financial institutions". "This is indeed a national security issue".

Facebook has "a lot of work to do before we get to the point where we're comfortable with it, " Mr Mnuchin said.

Marcus will testify before the House Committee on Financial Services on Wednesday.

Numerous senators told Facebook's blockchain boss David Marcus during a congressional hearing that it simply didn't trust the social network given the company's bad track record when it comes to privacy and security. She called Libra "a new Swiss-based financial system" that potentially is too big to fail and could require a taxpayer bailout.

"Facebook will not offer the Libra digital currency until we have fully addressed regulatory concerns and received appropriate approvals", he said in his opening statement.

In contrast to bitcoin's radical promise of a capped money supply invulnerable to political influence, Marcus said Libra, governed by a consortium of tech, VC and payments companies, had no such ambitions. "The time between now and launch is created to be an open process and subject to regulatory oversight and review".

Still, the most confrontational inquiries about the project came from Brown, who told Marcus: "Every time Americans trust you they seem to get burned". In that case, traders and investors would just use real US dollars to trade digital assets against, "just as they do when trading stocks or commodities back and forth with dollars". "We'd be insane to give them a chance to let them experiment with people's bank accounts". "So how are users to know that that's also not going to change and they're not going to be violated?" A number of companies have already backed the Libra, including MasterCard, Uber, PayPal and eBay.

"The time between now and launch is created to be an open process and subject to regulatory oversight and review", Marcus said in the remarks. By that, he of course means China, where tech companies are said to be eyeing their own cryptocurrency projects.

However, Facebook's regulatory reporting program will lead to wider public dialogue in the United States centering on data and financial privacy rules, the reporting of assets held overseas and tax regulations. "Those are going to need to be thoroughly and publicly assessed and evaluated before this proceeds".

"Facebook Libra's "virtual currency" will have little standing or dependability". It's the latest chapter in lawmakers' examination of the industry. Still, lawmakers said they were unconvinced that this good intention would be enough to deter negative consequences. Finance, saying that the attack on cryptocurrencies by President Trump could help Bitcoin's price rise to as much as $40,000 by the year-end.

Over the weekend, Thiel said the FBI and the Central Intelligence Agency should open an investigation into Google.

"It's a direct pipeline, " he said. We've also had multiple meetings of the FSA working group.

Google CEO Sundar Pichai said at the time that he had conversations with Mr Trump about investing in the American workforce, emerging technologies and "our ongoing commitment to working with the United States government".

"As we have said before, we do not work with the Chinese military", said Google Spokeswoman Riva Sciuto in an emailed response for comment.

Before 5 a.m. Eastern, Trump in a tweet called Peter Thiel, "A great and brilliant guy who knows this subject better than anyone!"