Libra Can Fix The ‘’Failing’’ Financial System: Mark Zuckerberg

Mark Zuckerberg will explain to the Congress that Libra can fix the ‘’failing’’ financial system and will bring financial services to the 1.7 billion people who are unbanked around the world. Let’s read more in the libra news below.

He explained that if Libra is not the one to fix this, China’s new central-bank crypto will. The Facebook CEO released a written testimony one day before his scheduled appearance before the US House of Representatives Financial Services Committee saying that Libra can fix the system and it is envisioned as a global payment service that can help people send money easily:

 “The current system is failing them. The financial industry is stagnant and there is no digital financial architecture to support the innovation we need. I believe this problem can be solved, and Libra can help. I believe this is something that needs to get built, but I understand we’re not the ideal messenger right now. We’ve faced a lot of issues over the past few years, and I’m sure people wish it was anyone but Facebook putting this idea forward.”

Zuckerberg noted that the U.S. could lose the leadership position on the world stage if Libra is not allowed to launch saying that China is moving quickly to launch a similar state-backed cryptocurrency in the upcoming months. He added that Facebook will not be a part of the launch anywhere in the world until all US regulators approve the project.

The CEO also made clear that Facebook does not expect to be leading any further efforts to the development of the crypto project given that the project’s governing council, the Libra Association has now been signed into existence with 21 members including Calibra which is a Facebook subsidiary and Breakthrough Initiatives, a venture capital fund that Zuckerberg is a part of. He wrote:

 “[The Libra Association] will work with the Federal Reserve and other central banks responsible for monetary policy to make sure that is the case. We expect the regulatory framework for the Libra Association will ensure that the Association cannot interfere with monetary policy. Libra is also being designed with economic security and stability in mind, and it will be fully backed through the Libra Reserve.”