Libra Vs. US Congress: All There Is to Know Ahead of Hearings

Libra Vs. US Congress: All There Is to Know Ahead of Hearings

This week is crucial for the future of Libra: Facebook's cryptocurrency project will be subject to two back-to-back hearings in the United States Congress. First, the Senate Banking Committee will discuss the token on July 16. Then, on the following day, Libra will be reviewed by the House Financial Services Committee. The cryptocurrencys co-creator, David Marcus, has announced that he will testify at both hearings.

Libra has been making waves worldwide since its white paper was unveiled in June. Specifically, the project has been experiencing massive political and regulatory pushback. Financial institutions of numerous countries, including the U.S., Japan, China, France and the United Kingdom, have expressed their concern regarding Facebook — the social media giant that has been surrounded by privacy-related scandals like in 2018 with Cambridge Analytica — having control over users sensitive financial data and releasing a digital asset that could potentially undermine their sovereign fiat currencies.

Brief introduction to Libra

Libra is a stablecoin-like digital asset and a blockchain-based financial infrastructure project that is lead by Facebook. As per the promotional material, it largely targets the unbanked population (which accounts for around 1.7 billion adults across the globe, according to the World Bank) and will initially focus on cross-border remittance. The latter aspect puts Libra alongside traditional operators Visa and Mastercard (both of which have notably invested in the project), as well as some fellow cryptocurrency companies like Ripple and its XRP token.

Libra was officially announced on June 18, when the social media giant published its white paper. The release followed several media reports sug ...

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Tags: Libra, Facebook, Cryptocurrency, White paper, David A. Marcus, Libra, United States Senate Committee on Banking, Housing, and Urban Affairs, United States Congress, United States House Committee on Financial Services, Libra