Facebook could be compelled to forsake its very own digital currency venture if the recently established group overseeing it chooses to push ahead without regulatory endorsement, CEO Mark Zuckerberg said on October 23 during his testimony at a House Financial Services hearing.
“Facebook will not be part of launching the libra payments system anywhere in the world until U.S. regulators approve,” Zuckerberg stated.
Zuckerberg stated more than once during the primary leg of the hearing that he can’t represent the independent Libra Association, which was legally established a week ago. Facebook is joined by 20 different members of the Libra Association, which will oversee the currency. Notwithstanding, the first thought for libra was created inside Facebook by Facebook staff.
Given Facebook’s request that Libra is isolated from its company, administrators needed to know how Facebook would follow through on its guarantee to wait for U.S. administrative endorsement. Zuckerberg said if the Libra Association voted to push ahead without the clearances Facebook feels it must have, “we would be forced to leave the organization.”
Rep. Nydia Velazquez, D-N.Y., asked earlier in the hearing if Zuckerberg would likewise trust that Congress will give an updated legitimate structure to regulators who will choose whether to approve the task. Zuckerberg stated he thinks Congress has a suitable oversight job over regulators, which Velazquez stated she takes as a “no.”
Be that as it may, Facebook remains supporting the Libra Association, Zuckerberg stated in his testimony. The members have not given their $10 million fees yet, and Zuckerberg indicated that figure could change.
The Libra Association recently witnessed a few key members leave, including Visa, Mastercard, PayPal, and eBay, among others.