Libra’s senate hearing: can we trust Libra?

On Tuesday during the hearing, the U.S senate banking committee questioned Facebook’s head of blockchain projects David Marcus, co-creator of libra and head of the Calibra wallet about Facebook’s plan to launch their cryptocurrency project.

Although the Libra project has raised various concerns, the senates focused on the trust issues which they consider to be the main problem.

The Democratic senator Sherrod Brown who led off this hearing compared Facebook to a toddler that is playing with matches, they even made it clear that trusting Facebook seems nearly impossible due to the company’s troubled past. Senator Sherrod Brown explicitly  said :

Besides, senators can’t stop themselves from being worried about user data monetizing and data collection, given the company’s troubled past some of them can’t believe that Facebook would miss this chance to gather user data. Senator Pat Toomey said:

Marcus tried to answer these concerns and said that they don’t have to trust Facebook because it is only one of the 28 Libra Association members, and said that facebook’s authority is equal to any of the other members and it won’t be given any special privileges.

He further explained that Calibra will not monetize user data and won’t collect any data from the transactions without explicit user permission.

Marcus also mentioned that the goal of being headquartered in Switzerland is not to evade oversight, he added that Libra will comply with the U.S regulatory system. 

 

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