This article comes fromTechcrunch, Originally by Josh Constine

Odaily Translator |

This article comes from

, Originally by Josh Constine

Odaily Translator |

David Marcus, head of Facebook's blockchain subsidiary Calibra, has prepared testimony for congressional hearings tomorrow and the day after tomorrow, and there is a message in it that is very noteworthy because he explained that the Libra Association will be regulated by the Swiss government because Switzerland is the headquarters of the Libra Association location. However, the Libra Association and Facebook's Calibra wallet will comply with US tax, anti-money laundering and anti-fraud regulations.

According to the testimony of David Marcus, he wrote:

“To clarify, the Libra Association is expected to be licensed, regulated, and subject to supervision. As the association is based in Geneva, it will be supervised by the Swiss Financial Market Supervisory Authority (FINMA). We have contacted the Swiss financial market The Regulatory Authority has held preliminary discussions and looks forward to engaging with them regarding the appropriate regulatory framework for the Libra Association. The Association also intends to register with the Financial Crimes Enforcement Network (FinCEN) as a money services business.”

Previously, House Financial Services Committee Chairman Maxine Waters had sent a letter to Facebook and the Libra Association asking them to halt development work on releasing Libra in early 2020 until regulators and Congress had the opportunity to review the issues and take action. Now, David Marus will make his case for Libra before the Senate Banking Committee and the House Financial Services Committee on July 16 and July 17.

The big question now is, are lawmakers in Congress smart enough to understand Libra? You know, when Facebook CEO Mark Zuckerberg (Mark Zuckerberg) testified before Congress last year, lawmakers raised many incompetent questions, and Mark Zuckerberg easily resolved them. For example, Senator Orin Hatch asked the question at the time:

"How do you maintain a business model where users don't pay for the service?"

As a result, Mark Zuckerberg responded easily with that classic "fake smiley face":

"Senator, we're running ads."

If the level of knowledge of members of Congress is still at this stage, it will be difficult for them to grasp the real problem of Libra-this "pseudo-decentralized" cryptocurrency.

Perhaps to cheer up Congress, President Trump previously tweeted three times in a row, in addition to calling it a "virtual currency", he also said that it has no status or reliability, and if Facebook wants to transform into A bank, then needs to be regulated like other traditional financial institutions.

To spare Congress from worrying about Libra trying to replace the dollar or intervene in the core issues of financial policy, David Marcus explained:

“Currencies in the Libra Reserve will be subject to the monetary policies of their respective governments, which will continue to control those policies. The Libra Association, which manages the Libra Reserve, has no intention of competing with any sovereign currency or entering the monetary policy arena. It will compete with the Federal Reserve and other central banks Cooperate to ensure that Libra does not compete with sovereign currencies or interfere with monetary policy. Monetary policy remains the domain of central banks."

David Marcus's testimony is very specific and may calm some "hawks" anger, but expect most of the questions asked by Congress to be more subjective, such as "is Facebook trustworthy after the "Cambridge Analytica scandal"? "This kind.

Another question is that Facebook launched this cryptocurrency project obviously not out of pure altruism, and David Marcus never mentioned how to make money from Libra in his testimony, so how will the Libra project make Facebook profitable? In fact, Facebook mainly has the following three methods:

1. If Libra becomes popular, Facebook could earn interest on Libra reserves, which are made up of traditional currencies and used as collateral for Libra, and the interest income could reach billions of dollars;