WASHINGTON (Reuters) – Facebook Inc CEO Mark Zuckerberg sought to reassure skeptical U.S. lawmakers on Wednesday that the company’s planned digital currency Scale, it would be a force for good, which would be to reduce the cost of electronic payments, and more and more people to participate in the global financial system.
Facebook Chairman and CEO Mark Zuckerberg testifies at a House Financial Services Committee hearing in Washington, d.c., USA, October 23, 2019 at the latest. REUTERS/Erin Scott
Appears to be in a suit and tie for the U.S. House of Representatives and the Committee on Financial Services, Zuckerberg said Facebook would not move on the Scale, which is comprised of a consortium of 21 members, who include venture capital firms and not-for-profit organizations, with a view to launching in the cryptocurrency until it had complied with all US laws are concerned.
Representative Maxine Waters, from the control panel, the fiery Democratic chair, had to Scale the project to stop its planned 2020 launch, it has drawn up legislation that would bar tech companies entering the financial services industry.
She questioned Zuckerberg on Facebook’s measures to combat the false information and voter suppression ahead of the November 2020 U.S. presidential election. On Monday, the company issued and had been removed from the network of russia’s accounts, targeted U.S. voters are on Instagram, which Facebook owns.
“It would be helpful to all, as Facebook is focused on addressing many of the shortcomings and failures to you before you go on the Scale the project,” Waters told it can be Done.
The scale has slowed in the past few weeks, in the midst of continuing criticism from lawmakers and regulators over fears it may be helpful for the purpose of money laundering and to upend the world’s financial system. A number of financial services providers, such as Mastercard, Visa card, PayPal, and eBay, have abandoned the project.
The Facebook CEO last appeared before Congress in April of 2018, where he made a 10 hour of questions over two days of House and Senate panels on top of the political consulting firm of Cambridge Analytica misuse of Facebook information by the customer, in order to intervene in the U.S. presidential election.
That scandal damaged the Facebook image of Washington, and has created worry among the lawmakers that the social media giant may not be relied upon for the launch of a global digital currency, to 2.4 billion users.
Zuckerberg acknowledged Facebook error, but said it should not stand in the way of the Scales, based in Switzerland, which is supposed to help reduce the cost of global payments.
“I get that, I’m not the perfect messenger for this, right now, we have to deal with a lot of problems over the last couple of years, and I’m sure there are a lot of people who want to be the only one Facebook is that it helps you to make it,” he said.
David Mark, the Facebook executive, will lead the Libra project, testified before the committee in mid-July. He told reporters last week that Zuckerberg won’t be able to make material commitments on behalf of the Scale, because Facebook is no longer monitoring of the project.
On Oct. 14, the Scale’s Association, consisting of 21 members, of the agreed upon articles of association, will explain how the business will be operated, as required by Swiss law. Most of the decisions requiring a majority vote of the members of the group, the board of directors, which means that Facebook is not the one in charge.
Wednesday’s hearing is likely to also address anti-trust concerns after 46 state attorneys general in New York, led in the anti-trust investigation of Facebook, officials announced Tuesday, in the provision of a two-pronged probe that could force an overhaul of the technology giant’s business.
Lawmakers are also likely to touch on other hot-button issues, including diversity issues, equal opportunities and the costs associated with the company’s regulator in March, is still pending, alleging Facebook violated the fair lending laws and regulations.
Report by Pete Schroeder; edited by Michelle Price, Lincoln Feast and David Gregorio