Zuckerberg: Libra Needs to be Built, Won’t Launch Without Approval, Can Fix Failing Financial System

Mark Zuckerberg, the CEO of Facebook, is about to go to Congress to defend the Libra Project. One day before officially testifying in court, Zuckerberg has released his prepared remarks for the hearings. According to them, the CEO will say that the stablecoin will not be launched without approval, but that it is a mistake not to support it.

Why? Because the United States has a failing financial system and China will also launch its own stablecoin. The Libra is said to be backed mostly by USD, so the country would retain its sovereignty, as the assets would be based on its official fiat currency.

According to Zuckerberg, the financial industry is very stagnant right now and lacking the infrastructure that is needed for the future. This is, in Zuckerberg’s view, something that needs to be done. China is already trying to create its own cryptocurrency, which is not backed by the dollar, so this could turn into a problem if people choose to use it instead.

He said,

“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.”

This could lead the United States losing the financial leadership that the country has since built in the last decades.

He also addressed the concerns that Facebook is not trustworthy to create the Libra. As the cryptocurrency would not be directly tied to Facebook, but to Calibra and the Libra Association instead, there would be a clear separation between them. All payments would be made via the legal subsidiaries of the company.

Zuckerberg also suggested that the Libra could even be used to fight financial crimes as the system would be very efficient in determining who was using it.