The top official overseeing Facebook’s Libra cryptocurrency told U.S. lawmakers in a prepared testimony that there will be no launch until regulatory concerns are discussed.
Libra Head David Marcus said the creation of Facebook’s cryptocurrency is not intended to compete with principal currencies and won’t interfere with monetary policy, Reuters reported.
“The Libra Association, which will manage the (Libra) Reserve, has no intention of competing with any sovereign currencies or entering the monetary policy arena,” Marcus said in a prepared testimony posted by the Senate Banking Committee. “Monetary policy is properly the province of central banks.”
Libra will register with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) as a money services business, Marcus said in the statement. He added that the cryptocurrency will fully comply with all anti-money laundering and Bank Secrecy Act rules.
There has been a global outcry of skepticism since Facebook announced Libra on June 18. Data security, money laundering and consumer protections are among the many concerns of policymakers.
Marcus is expected to testify on July 16 and July 17 before congressional committees overseeing financial issues. Several committee members have already hinted that they believe Libra should be barred, Reuters said.
The Libra Association will not store users’ personal data beyond what is needed for transaction information, Marcus said in the statement. In addition, personal information will not be shared with Facebook nor used for targeted advertising.
“I believe that if America does not lead innovation in the digital currency and payments area, others will. If we fail to act, we could soon see a digital currency controlled by others whose values are dramatically different,” his testimony reads.
Cryptocurrencies tumbled on July 15, just prior to Libra’s scheduled hearings before the Senate Banking Committee on July 16 and the House Financial Services Committee on July 17.