Zuckerberg Faces Intense Congressional Grilling Over Libra Cryptocurrency Plans
Facebook CEO Mark Zuckerberg tells Congress he does not control the Libra cryptocurrency while facing heavy criticism about privacy and corporate power. The tense six-hour hearing significantly reduces the likelihood of Libra launching in 2020.
Facebook CEO Mark Zuckerberg faces intense scrutiny during a six-hour testimony before the House Financial Services Committee. Lawmakers aggressively question his approach to the Libra cryptocurrency, user privacy, and encryption. The hearing starts on a particularly tense note as Rep. Maxine Waters accuses Zuckerberg of acting as if he is above the law and raises the serious possibility of breaking up Facebook.
Zuckerberg insists he does not control Libra and promises that Facebook only releases the cryptocurrency with full U.S. regulatory approval. To pressure lawmakers, he argues that blocking Libra allows China to establish its own dominant digital currency. He also reveals that Facebook plans to announce a new News tab feature this week, showing that the company continues to expand its ambitious projects despite the regulatory backlash.
Lawmakers show little support for the digital currency project, making a 2020 Libra launch look highly unlikely. While some Republicans praise Zuckerberg's business skills and warn against excessive government control of innovation, none explicitly endorse Libra. Zuckerberg shares that he is open to backing the coin primarily with the U.S. dollar and expanding government ID verification to combat abuse on his social platform.