This article comes fromCarbon chain value, reprinted by Odaily with authorization.
This article comes from
Carbon chain value
, reprinted by Odaily with authorization.
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At 22:00 on July 16th, Beijing time, the U.S. Senate Committee on Banking, Housing and Urban Affairs held a full-committee hearing on the theme of "Reviewing Facebook's proposed digital currency and its data privacy" on the Libra project recently led by Facebook. The hearing is From David A. Marcus, the general manager of the Facebook Calibra team.
Senator Martha McSally said, I don’t trust Facebook, data leaks, unauthorized collection of user data, modification of privacy, Facebook’s problems one after another, I don’t trust you. Now, you are launching another business model with Libra, and although I have received documents about Libra's privacy commitment, how can we trust you to do this?
David Marcus responded by saying, I know it will take a long time for us to earn people's trust. Libra is easier to use, but Libra will not be anonymous; unlike other cryptocurrencies, Libra will not bring fluctuations to the US dollar. Calibra will also comply with tax laws and cooperate with the Internal Revenue Service to make it easier for consumers to calculate taxes and avoid burdens.
"I hope we can trust Facebook," said the chairman of the Senate Banking Committee. Apparently, almost no one on this committee wants to do that.
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Transcript of the hearing
22:00 Senate Banking Committee Chairman Mike Crapo announces a hearing
Senate Banking Committee Chairman Mike Crapo announced the hearing. He mentioned that he and Vice Chairman Sherrod Brwon have been asking Libra questions since May this year, including credit information and personal data. Mike Crapo said that while there are uncertainties, the goal of Facebook's payment system is laudable, because according to the World Bank, there are still 1.7 billion people in the world who do not have bank accounts.
22:10 Senate Banking Committee Vice Chairman Sherrod Brown: Facebook is dangerous
Sherrod Brown, vice chairman of the Senate Banking Committee, said that Facebook is dangerous, but they may not realize that they are dangerous, but what is certain is that they do not respect the power of technology. Moreover, Facebook has changed the way the traditional news industry delivers information. Facebook is testing whether they can manipulate our emotions... manipulate our moods, and it turns out they can. Their motto is 'Disrupt Tradition, Innovate Fast', and they certainly have. They've moved fast, they've broken our political discourse, they've broken journalism...and they've got more and more arrogance.
22:15 David Marcus: If the United States does not lead the innovation of digital currency, other countries will do so
David Marcus reads the published testimony and mentions that if the U.S. doesn't lead in digital innovation in money and payments, someone else will. If we do not act, we will soon see digital currencies controlled by others with very different values.
22:24 Chairman Mike Crapo Question 1: Do you agree that the US should take the lead in setting encryption rules?
David Marcus: We chose Switzerland not to avoid supervision, but because Switzerland is well known in the WTO, the Bank for International Settlements, and even if Libra is established in Switzerland, it will still be registered with FinCEN."22:27 Deputy Chair Sherrod Brown Question 2: You recently told the Banking Commission that Facebook Inc collects personal data (from platform transactions). Can you describe it?
David Marcus: One thing is important...we're going to make the Calibra wallet competitive with other wallets...we're going to offer a lot of options, including the option for people to pay with a credit/debit card. The Libra Association will comply with the Bank Secrecy Act, the Combating the Financing of Terrorism Act, and other laws related to national security, and will also cooperate with FinCEN - without evading any regulation.
22:32 David Marcus argues that Facebook is just one of many companies involved in the Libra project
Sherrod Brown: Facebook has a history of misusing customer data, with reports that private companies were able to read private messages:
Do you think people should trust you?
David Marcus: You can ask Mark Zuckerberg (interrupted)
Sherrod Brown: I didn't hear Mark Zuckerberg's answer directly.
David Marcus quibbles that Facebook is only one of many companies involved in the Libra project, but Sherrod Brown, vice chairman of the Senate Banking Committee chairman, said, "You know better than anyone that only Facebook can reach 2 billion people."
22:35 David Marcus said that he would like all the assets he holds to be Libra
Sherrod Brown: Will you and your team commit to being fully paid by Libra?
David Marcus answered irrelevantly, claiming that Libra is not competing with the dollar. After Rod Brown repeated many times, David Marcus said that he would like all the assets he holds to be Libra.
22:38 David Marcus: Unless regulators are satisfied, we will not launch Libra
Sherrod Brown: How can elected leaders and economic pundits convince you and Facebook that this cryptocurrency should not be launched?
David Marcus: We think regulators are very legitimate in raising concerns. That's why we released our white paper early, we wanted to make sure we took the time to get this right.
Sherrod Brown: With all due respect...if all of us thought this release was a bad idea, would you still do it?
David Marcus: We won't launch until the regulators are satisfied.
22:43 David Marcus: I can guarantee that the Calibra wallet will provide perfect protection.
Sen Toomy MP: How does Facebook deal with hacking issues? When I withdraw money from the bank, I know I'm going to get the money, referring to FDIC insurance. What do we believe in Libra?
David Marcus: I can guarantee that the Calibra wallet will provide perfect protection. Libra will be backed by reserves. To provide account protection and prevent fraud. We are always ready to invest heavily in customer support. Libra will support 1:1 reserve, it is not a small part of the reserve, it is designed for stability. Everyone can open a Calibra account, you don't need a separate account, you can use your Facebook account, you have to verify, you need a government-issued ID, and pass the anti-money laundering and anti-terrorist financing certification requirements.
22:51 Facebook has not yet determined how much money to invest in the Libra Association.
Senator John Keendy: How much will Facebook invest in Libra?
David Marcus: Facebook has not yet determined how much money to invest in the Libra Association.
Senator John Kennedy: America has a gold standard in banking...which will ultimately provide greater consumer protection, but think Libra is worth it, I do worry about privacy...but I believe that American tech Giants and a well-funded consortium can endorse Libra.
22:51 We believe in the ability for users to move funds from wallet to wallet."
Senator Mark Warner: What incentives does Facebook have to ensure WhatsApp/Messenger supports 3rd party wallets?
David Marcus: We believe in the ability for users to move money from wallet to wallet.
Mark Warner was very dissatisfied. He interrupted David Marcus many times and told them not to start with: "Please let me clarify". Mark Warner then asked again whether WhatsApp and Messenger would support third-party wallets, and David Marcus replied: No, but there is interoperability.
Mark Warner: WhatsApp and Messenger are the leading social products in the world, do they allow other wallets besides Calibra?
David Marcus: If the question is whether there is interoperability and the ability to use other wallets through Libra, the answer is: yes. But David Marcus's answer was slammed by Mark Warner, which is not what I asked.
23:08 Calibra and US Treasury are working together to ensure compliance with travel rules
Senator Cortez Masto: Will the Libra Association be bound by the U.S. Bank Secrecy Act?
David Marcus: No, Libra will not reach consumers, but Calibra is engaging with FinCEN and the Treasury Department.
Senator Cortez Masto: Does Libra Comply With OFAC/Sanctions Law?
David Marcus: Calibra and US Treasury are working together to ensure compliance with travel rules
23:05 Senator Mike Rounds: Is there anything in Switzerland that the US can't offer?
David Marcus: Switzerland was not an escape from responsibility.
23:18 Libra supply will not be controlled now
David Marcus said that Libra's supply will not be controlled now, and no company will do so.
23:24 The committee will be responsible for Libra
Senator Tina Smith: Who is responsible for the Libra Association? There are more than 100 members of the U.S. Senate, but it is clear who is responsible. Does Libra have no consensus mechanism?
David Marcus: There will be a committee of 100 or more members who will make decisions and elect a 19-member council.
Senator Tina Smith: Can you elaborate on what the long-term business opportunity for Libra is?
David Marcus: More business opportunities means more advertising, and more advertising means more revenue. If we gain people's trust with the Calibra wallet, more people will use the wallet over time, then we can provide more services on the wallet and gain more market share of digital currency wallets.
23:30 It takes a long time to gain trust
Senator Martha McSally: I don't trust Facebook, data breaches, unauthorized collection of user data, privacy modifications, Facebook issues one after another, I don't trust you guys. Now, you're launching another business model with Libra, and while I've received documentation about Libra's privacy commitments, how do we trust you to be able to do this?
David Marcus: I know it takes a long time for us to gain people's trust. Libra is easier to use, but Libra will not be anonymous
23:40 Libra will comply with US national security requirements
Senator Tom Cotton: How do you ensure sanctions are enforced Iran is reportedly developing its own gold-backed cryptocurrency.
David Marcus: Sanctions can be enforced on Libra, and Libra will meet the national security requirements of the United States.
23:43 The Libra Association Charter is still being approved
Senator Brian Schatz: Facebook has a lot of problems, like cybersecurity, foreign interference, privacy, extremism, fake news, what problems have you fixed?
David Marcus: They're a work in progress.
Brian Schatz: If someone asked why Libra was not launched after solving existing problems, what would you say?
David Marcus: Libra will help the unbanked.
Senator Brian Schatz: Does Libra have a charter?
David Marcus: The Libra Association charter is still being approved and will be published once approved.
Senator Brian Schatz: How do you deal with the size and power of Facebook, and the fact that people already think it's too powerful? Why do you think you're going to do this, and not some other company?
David Marcus: Because we have the ability...we have the resources, I believe we should be the ones to issue Libra.
23:54 Libra, unlike other cryptocurrencies, will not bring volatility to the dollar
David Marcus: Unlike other cryptocurrencies, Libra will not bring fluctuations to the US dollar. Calibra will also comply with tax laws and cooperate with the Internal Revenue Service to make it easier for consumers to calculate taxes and avoid burdens.
David Marcus assured Senator Bob Menendez that Libra will never develop too fast.
0:08 Facebook is no longer a company
