This Is How Facebook CEO Contradicts Himself in Libra Testimony

Facebook statements are often, intentionally or not, make good people confused about the company's plans, or make them wonder whether the company has a clear plan at all. This time, talking about Libra token, CEO Mark Zuckerberg made a statement rather CONTRARY about monetary policy, while some other statement may be confusing as well.

In written testimony published ahead of the hearing before the Committee the United States Financial Services on 23 October, Zuckerberg referred to one billion people worldwide and 14 million of them in the United States who do not have access to bank accounts, saying that "the current system fails them. "He claims that the company wants to put power in the hands of the people, and that" giving people control of their money is also important. "

However, he said a little later in his testimony that "I want to be clear: this is not an attempt to create a sovereign currency"; Libra is the way "for people to transfer money," such as the existing online services. "Monetary policy is the province of the central bank, not Libra," said the CEO, adding that the Association Libra will not "compete with the currency sovereign or entering the arena of monetary policy," but "will work with the Federal Reserve and other central bank is responsible for monetary policy to make sure that happens. We expect the regulatory framework for the Association of Libra will ensure that the Association can not interfere with monetary policy. "

So, it seems that the CEO said that what Libra offers is "a simple, secure, and stable to transfer the money" that will "empower" for users - which means that this type of control will get with Libra is help to avoid bank. But then, there has been no focus on one of the biggest points surrounding monetary policy, which is fully controlled by the government, central banks around the world.

Meanwhile, in July, on the second day of the trial, David Marcus, co-creator and head Calibra Libra wallet, do not rule out the possibility that restrictions to use Libra may be applied, for example, if someone is banned from Facebook. It can also be seen as contrary to the statement gives control to the end user money and not for centralized power. Instead, cryptocurrencies decentralization, such as Bitcoin, do not have any kind of centralized authority.

consumer protection and launching a flurry
Protecting personal information has become a hot issue for Facebook for some time, and is often taken as an argument against the company, especially in terms of Libra and Calibra accompanying wallet. Speaking of Calibra and financial information Facebook receives, Zuckerberg wrote in testimony that they "do not use data to make decisions on the loan, or to make credit reports," and they "do not share information with third parties for loans or credit decisions."

However, the concern seems that this may change in the future. At the previous hearing, Marcus said that Calibra wallet will not share individual customer data with the Association of Libra or Facebook, and that, at the moment, there are no plans to start lending services, but some banks may wish to engage in. Also, Calibra chief said that the wallet might offer other financial services should the project get the trust of the client. Either way, this is one of the points that need to be explained by the company further.