Facebook says it won't launch Libra digital currency without US nod

Facebook CEO Mark Zuckerberg aims to reassure Congress on Wednesday that his company won’t try to eve financial regulators as it prepares its planned digital currency Libra. In prepared remarks released Tuesday ahe of a hearing before House Financial Services Committee, Zuckerberg says that Facebook “will t be a part of launching Libra payments system anywhere in world unless all U.S. regulators approve it.” That’s a stronger statement than Facebook official David Marcus me in July, when he said company will t offer Libra until it has “fully dressed regulatory concerns and received appropriate approvals.”

Facebook seeks US approval on Libra

Marcus les Libra project at Facebook. Zuckerberg is trying to defend Libra and alleviate concerns that currency could sidestep regulators. Analysts say Libra could avoid regulation and launch in countries where it’s t receiving pushback, but this does t appear to be Facebook’s intention. Inste, Zuckerberg is pushing an optimistic vision of Libra and what it could mean for people around world who don’t have access to bank accounts.

“ financial industry is stagnant and re is digital financial architecture to support invation we need,” his statement res. “I believe this problem can be solved, and Libra can help.”

RE | 'Facebook should t launch Libra currency until proper regulations'

Libra has seen several high-profile defections among or companies that originally supported it, including Visa and MasterCard. While some critics see those departures as evidence of Libra’s likely failure, U.S. regulators appear to view it as eugh of threat that y are considering possibility of Federal Reserve launching its own competitor currency.

“At Federal Reserve, we will continue to analyze potential benefits and costs of central bank digital currencies, and look forward to learning from or central banks,” Fed Gov. Lael Brainard said in a speech last week.

Zuckerberg’s remarks also play China card, urging regulators to act quickly.

“While we debate se issues, rest of world isn’t waiting. China is moving quickly to launch similar ideas in coming months,” Zuckerberg says in statement. Marcus me a similar argument over summer.

RE | Facebook's Libra digital currency could be blocked in Europe

In 2018, when Zuckerberg spent two days testifying before Congress on privacy, competition and a host of or issues, his tes cited competition from China as a reason against breaking up Facebook.