Libra co-creator David Marcus appeared before the US Congress to answer questions about Facebook’s cryptocurrency before senators. According to him, Libra is not a cryptocurrency, it does not intend to control the flow of money from the country or other countries and it could be an opportunity to access financial services for the unbanked.
On Tuesday, July 16, Marcus was questioned by a number of senators about the various implications of Libra . Issues such as privacy, financial scope, as well as the possibility that other development teams create purses to handle Libra were treated.
Marcus highlighted the technical and development work:
We have worked and developed this technology. We have invested in the best talents in the industry and engineering for their development and then we open their code. That will help their development and the growth of the network in the process.
David Marcus, co-creator, Libra
One point Marcus and the Senators insisted on several times during the hearing was the nature of Libra: the Facebook project is not a cryptocurrency, it is a means of payment . “Libra is planned to be used as cash, as a payment tool,” Marcus said on the subject.
The executive stressed that Libra does not seek to replace governments and banks in the issue of money , only to offer a tool that facilitates payments globally.
For Marcus, with Libra there can be an important economic evolution. He explained that unbanked citizens with low-end smartphones will be able to “move from the cash economy to the digital economy.” In this case, Marcus told the senators of Congress Calibra , the official purse Facebook for token Libra, will offer full support to users of the US , as well as compliance with policies against money laundering (AML) and know to your client (KYC).
In addition, when questioned on the subject and although with reluctance, Marcus assured that he would be willing to keep all his wealth in Libra. The executive also explained that the code will be open for the development of other programmers outside the Libra Association , and that, although WhatsApp and Messenger will not include other purses beyond Calibra in a predefined way , the Libra Association will be open to allow the creation of these new softwares.
On the other hand, when questioned about the confidence in the value of Libra, comparing its operation with fiduciary money, administered by banks, Marcus said that this means of digital payment will be backed by a reserve of different commodities , but not in a fraction , but as a total value, as a reserve basket.
In addition, he pointed out that in the event of a crash , similar to that suffered by banks in the United States in the past decade, they have the necessary permits and comply with the necessary shelter policies to serve US citizens.