Mark Zuckerberg, founder of social media giant Facebook, plans to tell the United States Congress that Libra will not be launched until the US regulator approves it.
Approval From Congress
According to prepared remarks on Oct. 22 released before the US House Financial Services Committee, Zuckerberg wants to alleviate regulatory concerns over the upcoming stablecoin.
“Facebook will not be part of launching the Libra payments system anywhere in the world until US regulators approve.”
According to the remarks, Libra will be pegged mostly to US dollars. He further leverages on China’s plans to release project similar to Libra in the upcoming months while stating that it could interfere with US leadership in the domain of finance and technology in the world.
Demarcating Facebook’s Social Data And Financial Data
He further stressed on the clear demarcation between Facebook’s Social data and Calibra’s financial data while stressing that Calibra is a regulated subsidiary of Facebook.
“Calibra will not share customers’ account information or financial data with Facebook, except to prevent fraud or criminal activity, when people affirmatively choose to share their data, or when we are legally obligated to do so,” Zuckerberg ensured, adding:
“Payments processed through Facebook’s licensed payments subsidiaries are subject to comprehensive anti-money laundering, counterterrorist financing, and sanctions monitoring that leverage both our automated systems and human review, and we report suspicious payments activity to applicable authorities consistent with our regulatory obligations. We also have policies in place to prevent fraud.”
Mark added that Libra was not created to replace sovereign currency but to serve as an online payment system only.
Private Data protection of Users
Mark Zuckerberg added that Facebook does not sell people’s personal information while it doesn’t intend to share it with third parties for lending or credit decisions.
“We use information about transactions that happen on our products to improve our services, including advertising. However, we do not use people’s payment account information itself for advertising purposes,” Zuckerberg said.
Source: cointelegraph.com | Image: Shutterstock