- Title: Zuckerberg reassures U.S. Congress on Facebook's digital currency plans
- Date: 23rd October 2019
- Summary: WASHINGTON, D.C., UNITED STATES (OCTOBER 23, 2019) (UNRESTRICTED POOL) ZUCKERBERG WALKING INTO HOUSE FINANCIAL SERVICES COMMITTEE HEARING ROOM ZUCKERBERG SITTING BEFORE START OF HEARING (SOUNDBITE) (English) U.S. REPRESENTATIVE MAXINE WATERS, CHAIR OF THE HOUSE FINANCIAL SERVICES COMMITTEE, SAYING: "As I have examined Facebook's various problems, I've come to the conclusion that it would be beneficial for all if Facebook concentrates on addressing its many existing deficiencies and failures before proceeding any further on the Libra project." ZUCKERBERG LISTENING (SOUNDBITE) (English) U.S. REPRESENTATIVE MAXINE WATERS, CHAIR OF THE HOUSE FINANCIAL SERVICES COMMITTEE, SAYING: "Perhaps you believe that you're above the law, and it appears that you are aggressively increasing the size of your company and are willing to step on or over anyone, including your competitors, women, people of color, your own users, and even our democracy to get what you want. All of these problems I've outlined, and given the company's size and reach, it should be clear why we have serious concerns about your plans to establish a global digital currency that would challenge the U.S. dollar. In fact, you have opened up a serious discussion about whether Facebook should be broken up." ZUCKERBERG, COMMITTEE MEMBERS DURING HEARING (SOUNDBITE) (English) FACEBOOK CEO MARK ZUCKERBERG, SAYING: "There are more than a billion people around the world who don't have access to a bank account, but could through mobile phones if the right system existed. And that includes more than 14 million people right here in the U.S. Being shut out of the financial system has real consequences for people's lives. And it's often the most disadvantaged people who pay the highest price. People pay far too high costs and have to wait far too long to send money home to their families abroad. The current system is failing them." ZUCKERBERG TESTIFYING, MEDIA, AUDIENCE (SOUNDBITE) (English) FACEBOOK CEO MARK ZUCKERBERG, SAYING: "The idea behind Libra is that sending money should be as easy and secure as sending a message. Libra will be a global payment system fully backed by a reserve of cash and highly liquid assets. Now, I believe that this is something that needs to get built. But I get that I'm not the ideal messenger for this right now, we've faced a lot of issues over the past few years and I'm sure there are a lot of people who wish it were anyone but Facebook who were helping to propose this." COMMITTEE MEMBERS DURING HEARING (SOUNDBITE) (English) WAGNER, HOUSE FINANCIAL SERVICES COMMITTEE MEMBER, SAYING: "Twenty eight companies joined as founding members by signing a non-binding letter of intent to join the association. But in recent weeks, many of these founding members have dropped out of the association. Perhaps they're not so sure it's going to work either. PayPal, Visa, MasterCard, Stripe, Bookings Holdings, eBay and Mercado Pago...You've lost these stable partners, I would say. And I find a highly concerning. Very briefly, what, what do you make of these sudden departures?" (SOUNDBITE) (English) FACEBOOK CEO MARK ZUCKERBERG, SAYING: "This is a...this project is too big for any one company to do on its own, which is why we we've set up this independent Libra Association with a number of other companies and non-profits. It's very, it's a very complex project. And, and as you say, it's risky." (SOUNDBITE) (English) U.S. REPRESENTATIVE ANN WAGNER, HOUSE FINANCIAL SERVICES COMMITTEE MEMBER, SAYING: "Scores of of stable partners have dropped out. Why?" (SOUNDBITE) (English) FACEBOOK CEO MARK ZUCKERBERG, IN AN EXCHANGE WITH WAGNER, SAYING: "Well, Congresswoman, I think you'd have to ask them specifically for..." WAGNER, SAYING: "Why do you think they dropped out?" ZUCKERBERG, SAYING: "I think because it's a it's a risky project and that there's been a lot of scrutiny." WAGNER, SAYING: "Yes, it's a risky project." ZUCKERBERG, COMMITTEE MEMBERS DURING HEARING (SOUNDBITE) (English) FACEBOOK CEO MARK ZUCKERBERG, SAYING: "Deep fakes are clearly one of the emerging threats that we need to get in front of and develop policy around to address. We're currently working on what the policy should be to differentiate between media that has been manipulated by A.I. tools like deep fakes with the intent to to to mislead people and compare that to just normal content that might have been, you know, an interview that might've just been cut differently and someone might not like the way that it's cut, but, but, but is not a deep fake and is not not kind of misleading, manipulated content in that way. So we're working on that policy." ZUCKERBERG, COMMITTEE MEMBERS DURING HEARING (SOUNDBITE) (English) FACEBOOK CEO MARK ZUCKERBERG, SAYING: "Later in this week, we actually have a big announcement coming up on on launching a big initiative around or around news and journalism." ZUCKERBERG, COMMITTEE MEMBERS DURING HEARING
- Embargoed: 6th November 2019 16:25
- Keywords: Facebook Zuckerberg cryptocurrency Libra
- Location: WASHINGTON, D.C., UNITED STATES
- City: WASHINGTON, D.C., UNITED STATES
- Country: USA
- Topics: Lawmaking,Government/Politics
- Reuters ID: LVA002B2BK75Z
- Aspect Ratio: 16:9
- Story Text: Facebook Inc CEO Mark Zuckerberg sought to reassure skeptical U.S. lawmakers on Wednesday (October 23) that the company's planned digital currency Libra would be a force for good that could reduce costs for electronic payments and help more people participate in the global financial system.
Appearing in a suit and tie before the U.S. House of Representatives Financial Services Committee, Zuckerberg said Facebook would not back any move by Libra, which comprises a consortium of 21 members including venture capital firms and nonprofits, to launch the cryptocurrency until it had satisfied all U.S. regulatory concerns.
Representative Maxine Waters, the panel's fiery Democratic chair, had previously called for the Libra project to halt its planned 2020 launch, and has drafted legislation that would bar tech companies from entering financial services.
She quizzed Zuckerberg on Facebook's steps to combat misinformation and voter suppression ahead of the November 2020 U.S. presidential election. On Monday, the company disclosed it had removed a network of Russian accounts targeting U.S. voters on Instagram, which Facebook owns.
"It would be beneficial for all if Facebook concentrates on addressing its many existing deficiencies and failures before proceeding any further on the Libra project," Waters told Zuckerberg.
Libra has faltered in recent weeks amid sustained criticism from lawmakers and regulators over fears it may aid money laundering and upend the global financial system. Several financial partners including Mastercard, Visa, PayPal and eBay have abandoned the project.
The Facebook CEO last appeared before Congress in April 2018 when he fielded 10 hours of questions over two days from House and Senate panels on political consulting firm Cambridge Analytica's misuse of Facebook customer data to interfere in the U.S. presidential election.
That scandal damaged Facebook's image in Washington and has compounded worries among lawmakers that the social media giant cannot be trusted to launch a global digital currency to its 2.4 billion users.
Zuckerberg acknowledged Facebook's mistakes but said they should not stand in the way of Libra, based in Switzerland, which would help reduce the cost of global payments.
"I get that I'm not the ideal messenger for this right now, we've faced a lot of issues over the past few years and I'm sure there are a lot of people who wish it were anyone but Facebook that was helping to propose this," he said.
David Marcus, the Facebook executive leading the Libra project, testified before the committee in July. He told reporters last week that Zuckerberg will be unable to make material commitments on behalf of Libra because Facebook no longer controls the project.
On Oct. 14, the Libra Association comprising 21 members agreed articles of association laying out how the organization will be governed, as required by Swiss law. Most decisions will require a majority vote of the group's governing council, meaning Facebook will not call the shots.
Wednesday's hearing is also likely to address antitrust concerns after 46 attorneys general joined a New York-led antitrust investigation of Facebook, officials announced Tuesday, ramping up a bipartisan probe that could force an overhaul of the technology giant's business.
Lawmakers are also likely to touch on other hot button issues, including diversity, inclusion, and charges brought by the housing regulator in March, still pending, alleging Facebook violated fair lending laws.
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