The US Senate held a hearing on Facebook’s plans to launch its own cryptocurrency. The representative of the social network announced Facebook's intention to comply with the norms of US law and declared the predominant role of US in the formation of regulatory rules for the crypto industry.

David Marcus, current head of the Facebook's blockchain division and former PayPal president, took part in hearings at the Banking Committee of the US Senate. Senators asked Marcus questions regarding Libra’s risks, personal data protection, and countering money laundering.

According to Marcus, Facebook is not responsible for the entire development of Libra as there is the Libra Association registered in Switzerland. What Facebook is focusing on is creating a Calibra wallet that will be built into Messenger and Whatsapp, Marcus explained. The social network will not allow third-party wallets to be built into their applications. At the same time, Calibra will allow users to interact with other crypto vaults, but the fact that only Calibra can be embedded in Facebook messengers will give social networks a significant advantage over other potential wallets developers in which Libra can be stored.

During the hearing, Marcus made the following key statements:

  • The US must "absolutely" lead the process of developing rules and regulations for the crypto industry in the world,
  • Libra Association is registered in Switzerland not to evade supervisory authorities, but because the headquarters of international financial organizations such as the Bank for International Settlements (BIS) are located there,
  • Calibra will cooperate with the Financial Crimes Control Service of the US Treasury,
  • Libra will comply with US law and will not be launched until all the questions of US lawmakers are answered,
  • “You will not have to trust Facebook”, because it is only one of the current 28 members of the association, and the social network will not have special privileges,
  • Facebook will not sell or monetize Calibra user data, and if it decides to use it in any way, it will ask user's consent.
  • Facebook's business model for Libra is based on plans to fuel e-commerce, which will force companies to spend more on advertising on Facebook,
  • The adoption of blockchain technology in the world is inevitable, and if the United States does not lead this process, then countries with different values (read - China) can do it.

Marcus did not answer questions about how much Facebook has invested in Libra. One of the senators also expressed surprise that the Libra Association is called a non-profit organization, because its business model involves paying interest on Libra Investment Token tokens.

Marcus also noted that the Libra Association will be able to freeze the assets of terrorist organizations, which will be stored in Calibra.

Today, Facebook is facing another hearing. This time Marcus will attend hearings in the Financial Services Committee of the US Congress.