Bitcoin Plunges Nearly 13% As Facebook's Crypto Plans Worry U.S. Senators

Facebook’s Marcus Says He’d Accept 100% of His Pay in Libra

Facebook’s Marcus Says He’d Accept 100% of His Pay in Libra

"If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks", he wrote.

Facebook's plan has raised some serious concerns, with senator Sherrod Brown stating that the company "through scandal after scandal [showed] that it doesn't deserve our trust" and that "we'd be insane to give them a chance to let them experiment with people's bank accounts".

On Monday, US Treasury Secretary Steven Mnuchin said he was "uncomfortable" with Libra, while last week the head of the US Federal Reserve, Jerome Powell, also voiced concerns. "This is indeed a national security issue". "So how are users to know that that's also not going to change and they're not going to be violated?"

The Treasury has made it clear to Facebook that they needed to comply with the same anti-money laundering and countering financing of terrorism rules as traditional banks.

"We need to get Mark Zuckerberg here".

He also touched upon the importance of the US dollar as the leading global currency.

"A 2020 launch date demonstrates deep insensitivities around how Libra could impact USA national security, the global financial system, the privacy of people across the globe, criminal activity and worldwide human rights", said Rep. Ann Wagner, R-Miss.

Marcus also sounded a familiar theme for the company: if Facebook does not build the technology of the future, someone else will. Marcus mentioned multiple times that he believes the USA should be a leader in creating a new global currency - something that other countries will try to do without US input, he added. But, soon after the announcement in June, Facebook was back in the hot seat.

Facebook once again faced intense questioning from U.S. lawmakers over the future launch of its cryptocurrency project Libra, in a combative hearing that highlighted deep skepticism over the tech firm's possibly entering the banking world following a slew of privacy scandals.

Sen. Sherrod Brown (D-Ohio), the ranking committee member, said Facebook repeatedly abused the public trust, calling the company "dangerous".

Critics say the fine will hardly make a dent for Facebook, which had more than $15bn in revenue in the first three months of 2019.

"We would be insane to give them a chance to experiment with people's bank accounts, and to use powerful tools they don't understand, like monetary policy, to jeopardize hardworking Americans' ability to provide for their families".

Brown was joined by senators from both parties who expressed similar concerns. Arizona Republican Martha McSally put it bluntly: "I don't trust Facebook", she said.

"I'm concerned that a 2020 launch date demonstrates deep insensitivities around how Libra could impact our national security, the global financial system, the privacy of people across the globe, criminal activity and worldwide human rights", she said.

But that's not the full picture: Calibra very much is Facebook's product, and by virtue of the fact it will be backed by the world's biggest and most powerful social network, it will become the dominant force in global cryptocurrency.

"I believe that if America does not lead innovation in the digital currency and payments area, others will". The Libra Association will be the organization that will govern the Libra digital currency and will be headquartered in Switzerland.

"I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air", he wrote. The move seems primarily directed at Facebook's involvement in the Libra project.