New Challenge to the “Libra”
Congress attacks “Libra” Treasury supports dollar rule, which the technology giant plans to launch next year, US congressmen have expressed uneasiness about the company issuing a globally traded digital currency, accusing Facebook of being “dangerous and unaware of the strength of the technology it uses “Asserting their refusal to concentrate more power in the giant technology companies.
In a hearing to discuss David Marcus, the company’s vice president, who is responsible for the e-currency launch project, lawmakers said Facebook had previously disappointed its customers and lost confidence, so it should not be allowed to manage a new digital currency, Who “grabbed the sack of sulfur and burned the house” because he did not understand the seriousness of what was in his hands.
“Looking at the history of Facebook, it would be crazy to give them a chance to try to deal with the bank accounts of citizens, and to give them a powerful tool they do not understand as monetary policy, which could damage the ability of American workers to meet the needs of their families. ”
By the end of last month, Facebook had announced its intention, along with dozens of other companies, including Visa and MasterCard, Ober, the two companies PayPal and Strike, the hotel reservation company On the Internet, “Bocking dot com”, contribute funds, placed in a fund to launch encrypted currency, “in order to facilitate digital payments around the world, and make them cheaper than the alternatives currently available,” while Facebook said on Monday that the new currency ” Compete with the national currencies of different countries, and will not interfere in the monetary policy of central banks.
Headquarters Switzerland and US standards
In an attempt to reassure Congressmen, Marcus, a French-born American entrepreneur for a Roman father and mother of Iran, who is responsible for the company’s messaging programs, said the new currency would not be an investment tool and that Facebook and its partners in the currency project were not aiming to act as banks. central.
He added that it would be one of 28 existing companies, perhaps 100 or more in the future, responsible for the new encrypted currency project, pointing out that Facebook would have no advantage in managing the project.
“We will not launch the encrypted currency before regulatory approval is obtained and we will answer all inquiries from members of Congress.”
He denied that the reason for Switzerland’s choice to be the new regulator was to evade regulatory restrictions or other responsibilities. He also stressed that the new currency, despite its presence in Switzerland, but it will abide by all the standards of control imposed by the United States.
The congressional hearing came a day after Treasury Secretary Stephen Menuchin attacked the Libra digital launch project, stressing that the United States would be very serious about preserving the role of the US dollar as the global reserve currency and would do its utmost to protect the US and global economy. , In the face of digital currencies.
At a press conference held in Washington on Monday, while welcoming the technological innovations responsible for helping to develop financial services and better delivering them to millions around the world, Menuchin stressed the importance of efforts to achieve the goals of protecting the integrity of financial transactions and preventing misuse. “Suspicious transactions and speculations Has dominated the encoded currencies since its inception “almost 10 years ago.
Commenting on the company’s intention to launch its encrypted currency next year, Menuchin said the company would face a difficult task to convince the authorities that it could launch its currency, taking precautions to prevent its exploitation in activities linked to money laundering or terrorist financing.