Home / NewTech / Congress pillory Zuckerberg on Libra cryptocurrency Congress pillory Zuckerberg on Libra cryptocurrency
Mark Zuckerberg, co-founder and CEO of Facebook, said Wednesday before the House Financial Services Committee.Chip Somodevilla / Getty Images Mark Zuckerberg faced some of the most devastating issues on Wednesday for six hours as dozens of lawmakers tackled Facebook’s business practices, the many past scandals, and the general lack of consumer confidence in the world’s largest social network.The US Financial Services Committee should focus on Libra a cryptocurrency that puts Facebook in the lead, and hopes are becoming a form of global digital money.The launch is scheduled for the first half of next year.
However, the event almost immediately led to a general charge against Facebook.
“Having examined Facebook’s various issues, the committee’s chairperson, Californian MP Maxine Waters, said the opening hearing:” I’ve come to the conclusion that it would be beneficial for everyone to have Facebook on it focus on addressing its many existing shortcomings and failures before the Libra project ”
Waters subsequently criticized Facebook for its failure to diversify its workforce, filed a lawsuit against the company for allowing housing discrimination and an ongoing antitrust investigation into the company, adding that several legislators called for a moratorium on the Libra project
The Commentary set the tone for a largely controversial hearing in which many predominantly Democratic lawmakers use their time to scold the billionaire about his company’s failures, including the organization of hate groups, facilitating the exploitation of children, facilitating the interference of Russian constituencies, preventing data breaches, and the OK of misleading political ads Several Republicans expressed their sensitivity and praised Zuckerberg for creating a successful business and for innovating
Yet, the force and tenor of the questions stood in stark contrast to Zuckerberg’s statement to Congress last year, in which he emerged largely unscathed, as elected officials seemed to have no idea how Facebook works.This time, the legislator was better prepared with more demanding questions and a more combative attitude.
“Facebook’s internal motto has long been to act quickly and break things.” Mr.Zuckerberg, we do not want to break the international monetary system, “said New York Democrat Nydia Velázquez on Wednesday.
Republican Steve Stivers, Ohio Rep., Argued that a payment system like the Libra could be of benefit to people in countries with unstable currencies, but he noted that Zuckerberg may have bitten off more than he can chew by trying to create a new digital currency to operate that system.
Underplaying: Look at that To: [19659014] Zuckerberg is grilled on Capitol Hill
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The Libra had a rocky launch .
Critics fear it might become a channel for financing terrorism and money laundering, an issue that Congressional members have repeatedly raised during the hearing.
Several governments are worried that Facebook is using Libra to circumvent regulations and create a competitive currency with the dollar, the yen or other established national currencies.Earlier this month, the Libra Association lost seven founding members including the payment companies Visa, Mastercard and PayPal.
In June it was announced that Libra is a stablecoin, a form of cryptocurrency hedged by other assets against wild numbers fluctuates in value.
The club initially had 28 potential members, each of whom would raise $ 10 million to fund the project and run network nodes to power the medal.
To dispel concern about Libra, Zuckerberg’s prepared statement for the hearing focused on the use of the digital currency to help people without bank accounts, making the transfer of funds to so-called non-banks easier and cheaper.With the scales, he said, he wanted to transfer money as cheaply and effortlessly as text messages.However, members of the congress said that Facebook has a close track record in supporting the poor and minority groups, which is why they questioned its motives for creating the Libra to make the world a better place, “Zuckerberg said in response to a legislature,” for life to improve people, and I hope that you expect me to.Zuckerberg said Facebook will not be involved unless it is approved by the US and would go so far as to move away from the Libra Association if it went ahead without this approval, and it also called on the US Cryptocurrency innovation, referring to China’s work as a warning, “If America does not lead in this direction, others will do it,” he said, adding that it would be much harder to put the US regulations down to one
Legislators on both sides of the Ganges kept coming back to their concern that the Libra was founded in Switzerland, and not in the US, which they considered unpleasant, as Zuckerberg was repeatedly asked Whether he was willing to bring the Libra Association, a nonprofit organization that manages the digital currency, to the US, he declined and said he was in control e the organization is not.
Zuckerberg showed some self-confidence about the many Facebook organizations controversy.
“I think that’s something that needs to be built,” Zuckerberg wrote in his testimony, “but I understand we’re not the ideal messenger right now, we’ve had a lot of problems in the last few years.” Years, and I’m sure that people wish it was someone other than Facebook, who brings that idea.
Zuckerberg’s appearance in Washington is due to the fact that his social network is apparently being criticized on all fronts.Liberal and conservatives have complained that Facebook has too much power to social and political discourse Some critics, in particular the Democratic presidential candidate Elizabeth Warren, called for the dissolution of the company, while Congress and dozens of Attorney Generals initiate antitrust investigations against the company .The social network has continued to be concerned that there is privacy This issue has already led to an unprecedented fine of $ 5 billion.
The Libra was a sore place for the world’s largest social network, and regulators around the world have come to grips with Facebook’s plans stubborn and claiming the scales k make money laundering easier.In July, David Marcus, Facebook’s Blockchain boss, was summoned to Congress to testify about the scale.
While Zuckerberg avoided larger gaffes during the long hearing or was overly defensive, he appeared unprepared or unprepared.Answer several questions from Rep.
Joyce Beatty, a Ohio Democrat, on the lack of diversity on Facebook.She concluded by pointing to concerns that Facebook favored discrimination against housing: “It’s almost as if you think this is a joke if you’ve ruined and discriminated against the lives of many people.”
At another point, California, Deputy Brad Sherman, a Democrat who called Libra a “powerful burglary tool” before pointing to a viewer with a picture of a dollar with Zuckerberg’s face.The illustration was titled “Zuck Buck”.
Ultimately, Democrat Colorado Rep.Ed Perlmutter seemed to distill what many legislators felt about the Libra.
“We have to regulate that,” he told Zuckerberg.As for the Facebook team, he added, “And I’m not sure you understand what it is.” The New York Times reported that the social network will spend $ 12.3 million on federal lobbying in the first nine months of the year, nearly as much as the $ 12.6 million spent in 2018.The company has 60 in-house and contract lobbyists, the newspaper reported, about twice the size of 2016.
Outside the Libra, many representatives asked questions about Facebook’s policy of accepting ads from politicians, even if they contained false information.Zuckerberg was in a PR offensive to defend the policy that was assaulted after Facebook refused a petition from Joe Biden’s presidential campaign to get an ad out of President Donald Trump’s re-election campaign that contained false information about the former vice president.19659006] “Do you see a potential problem here in that no facts about political advertising are verified?” asked Rep.
Alexandria Ocasio-Cortez, a New York Democrat who had previously asked questions to the Technical Director on Twitter .
“I think lying is bad, and I think if you put up an ad that lied, that would be bad,” Zuckerberg replied.
Rep.Jesus Garcia, an Illinois Democrat, warned Congressional leaders of the potentially gravest concerns.
“Facebook has gained too much power,” he said.”It’s gotten too big and we should seriously consider breaking it up.”
Andrew Morse and Queenie Wong of CNET contributed to this report.
Published for the first time at 12:47.PT on October 22nd.Updated at 8:24, 9:01, 23:37, 14:43.
and 17:16 PT on October 23: Adds comments and statements from the hearing..
