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US Senators Question David Marcus about Libra, Price Of BTC Drops Afterwards

The current Vice President of Messaging Products at Facebook, David Marcus was questioned by several members of the United States Committee on Banking, Housing, and Urban Affairs regarding their plans with Libra, a blockchain digital currency, proposed by the social media giant . Mr. Michael Dean Crapo, the Chairman of the committee headed the meeting.

The senators were given five minutes each to express their concerns to Marcus which ranged from security concerns to the administration of Libra Association.

The general perspective towards the payment platform was not negative but the senators seemed to be mainly apprehensive about the privacy and ways of money laundering to finance illicit activities.

Senator Martha McSally even said at the beginning of her statement,

“I don’t trust Facebook.”

When Senator Smith raised a question regarding the governance model of Libra, Marcus replied by saying that the charter for the governance model and nomination of lead representatives is yet to the layout. They intend to seek advice from the members and the regulatory body on the issue.

A couple of senators also question Libra around the When questioned about accountability as creators of a medium for fraud, if any, David replied that local constituencies would be set up and it will comply with FinCEN regulations.

On questions about Facebook’s monetary policy with Libra, David Marcus said,

Facebook has 90 million businesses that advertise on Facebook. Libra could lead to more commercialization and hence would mean more money for Facebook.

David Marcus welcomed each concern with care and accepted that the regulations would be subject to further changes.
Lastly, he said,

“We will not move or launch libra on the Facebook platform if required”

The senators seemed to be apathetic towards Facebook after the meeting ended, but they were open to working with the Libra Association to facilitate this innovative idea.

The meeting, that was broadcasted live on Tuesday, affected Bitcoin prices negatively. BTC dropped below $10,000 as the proceedings concluded. One can only hope that its association with Facebook does not cost Libra too much.