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Libra Crypto Debacle; Zuckerberg To Testify In A Few Hours

Facebook CEO Mark Zuckerberg is set to face a tough test in a few hours as he is set to testify before a House panel on Libra publicly. He will be speaking on his company’s effort in launching the controversial global currency.

His testimony will be his first since he appeared again before congress to answer questions on the Cambridge Analytica scandal that involved his giant corporation. The questioning on Wednesday comes at a crucial stage for Libra and could mean the way forward or backward for the project.

The leadership of mark Zuckerberg has led to the launch of a digital currency that could be a working solution to entrenched financial systems around the world.

Zuckerberg will be walking on a tight rope on Wednesday as he seeks to defend his new project. At the moment, Facebook is on a stark of controversies that still haunt the giant social media company. Zuckerberg will be trying to make the challenging case that his company shouldn’t be the face of the project.

On Libra’s Defense

Zuckerberg will be offering a tight defense for his Libra project, referring to its ability to provide financial services to people with no bank access. On the other hand, he will be making the case that he won’t be calling the shots for Libra and Facebook is only a partner in the broad sense of the project.

According to notes in his prepared testimony, Zuckerberg will acknowledge Facebook’s efforts in bringing together a 21 member coalition of companies and social impact organizations that are committed to moving forward with the idea.

He will also add that by design, Facebook won’t lead the efforts going forward. The Libra association that has already been created has a governance structure and will drive the project thereafter.

Libra

David Marcus: Zuckerberg Will Only Share His Views

The testament will be an echo of what Facebook executives have been trying to do; drawing distinctions between Facebook and the Libra Association’s 21 member group.

David Marcus, head of Libra’s subsidiary Calibra told reporters at a dinner last week that Zuckerberg can’t be the face of Libra, and it will be hard for him to answer on Libra’s behalf.

Marcus asserts that Zuckerberg can only share his views but cannot engage or commit anything on Libra’s behalf simply because he lacks the powers to do so.

Challenges

Among its 21 members include Spotify, Uber, and Lyft who formalized its governance structure and signed a charter in Geneva. They are however yet to appear before Congress to speak on the project. This has drawn significant fire from regulators.

Earlier in the month, the project faced one of its biggest challenges yet when MasterCard, Visa, and PayPal withdrew their association from the virtual currency. However, the Association claims to receive interests from more than 1500 entities, 180 of whom have qualified for membership.

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