Facebook's Marcus: Libra to Satisfy All Regulatory Matters Before Its Launch

David Marcus, CEO of Facebook's crypto wallet Calibra, underlined that Facebook would not launch the Libra cryptocurrency project before they address all regulatory concerns.

Marcus delivered his comments at a hearing on Libra with the Financial Services Committee of the United States House of Representatives today, July 17, as reported by a Cointelegraph correspondent.

"Neither your white paper nor your subsequent Facebook post offered any concrete details as to how you plan to implement or enforce strong AML , how you plan to enforce KYC , and most important, to ensure the safety - and that's what all of us are concerned with - of our financial system."

Rep. Scott asked Marcus how the company envisions Libra's responsibility to combat money laundering to protect the financial system.

Marcus said that "Blockchain gives additional information to law enforcement and regulators compared to our current system."

Marcus also stated that he believes that they can improve the current system in order to preclude wrongdoers from using Libra for illicit activity.

Rep. Jim A. Himes noted that "Users will have the profoundly unfamiliar experience of assuming foreign currency risk" and asked Marcus how the company is going to make foreign currency risk transparent.

Marcus responded that Facebook will have educational tools built into the product.

On July 15, a day before the hearing, the Banking Committee released Marcus' opening statements, where he stressed Libra and Calibra's implications for commerce and consumers.

"State financial regulators will regulate Calibra as a money transmitter, and the Federal Trade Commission and the Consumer Financial Protection Bureau will monitor for consumer protection and data privacy and security issues."