Daily Management Review

Facebook To Wait For Regulatory Approval Before Rolling Out Libra


Facebook To Wait For Regulatory Approval Before Rolling Out Libra
Facebook would be waiting till it gets clearances and approval from regulatory authorities before it would launch and roll out its planned and announced digital currency Libra according to a statement issued by David Marcus, the company’s head of Calibra, the subsidiary of the social media company that is engaged with the digital coin.
These comments made by Marcus were a part of a prepared testimony for his appearance in front of the Senate Committee on Banking, Housing and Urban Affairs and were released before that.
"Facebook will not offer the Libra digital currency until we have fully addressed regulatory concerns and received appropriate approvals," Marcus wrote in his testimony released Monday. "Libra is a payment tool, not an investment."
Earlier, concerns over the planned crupto currency form Facebook have been expressed by the US Federal Reserve Chairman Jerome Powell's and Marcus responded to it by saying that the company also believes that the process of reviewing the Libra needs to be "patient and thorough." Politicians in the United States as well as in Europe have raised concerns about the Facebook’s plan for Libra, since the announcement of the crypto currency, because of the dismal record of the company not being able to manage customer privacy issues in recent years. 
The duties and aims of Calibra that also includes providing of financial services for a digital wallet, comprised most of the rest of testimony by Marcus. The sole use of the crypto currency from Facebook would be to make purchases and transactions in apps such as Messenger, WhatsApp and a standalone app, reiterated Marcus in the statement.
The goals that are set by the officials concerned about Libra are the same as that of the Libra Association which is an organization comprising of firms and groups that will function as the governing body and as a network for the crypto currency, said the organization.
"The Libra Association maintains that financial inclusion, regulatory harmony and consumer concerns are not competing objectives, but rather work in lockstep with the Association's goals of offering a simple global currency and financial infrastructure that empowers billions of people," Dante Disparte, head of policy and communications for the Libra Association, said in an email statement Monday. "The lead up to the launch of Libra in 2020 builds in the time for conversations with regulators and policymakers around the world to take their questions into account."