Last week, we reported that Facebook CEO Mark Zuckerberg would testify to defend the Libra project at a hearing in front of the House Financial Services Committee. This week, we will report about the details of the hearing held on 23rd yesterday.
At the hearing about Libera in front of the House Financial Services Committee, the Q&A was made more than 6 hours. Zuckerberg was accused of the various concerns about Libra by the congressman.
Zuckerberg clarified that Facebook will not launch Libra in the world until they get permission from US authority which means he suggested to postpone the launch of Libra. In addition, he clarified Facebook may withdraw from Libra’s association if they can’t get permission.
G20 which finished on 18th already announced the agreement that they will not permit the launch of Libra unless the appropriate action against illegal use to protect the consumers is not ready. Kuroda, the president of Bank of Japan and Japanese Foreign Minister Aso appealed their stance to control the launch of Libra at the press conference on 18th. Japan is the chair country of G20. It seems that Zuckerberg followed the agreements by G20.
Zuckerberg also announced as the following.
"China is moving quickly to launch a similar idea in the coming months. We can't sit here and assume that because America is today the leader that it will always get to be the leader if we don't innovate.“
He appealed the necessity of the innovation to keep US’s financial leadership, concerning that China is getting ready to launch the first Chinese government Cryptocurrency.
The world famous Forbes reported on August that China will launch CBDC (Central bank digital currency) which was developed during last 5 years in November 2019. The scheme is that People’s Bank issue the cryptocurrency for the 4 major Chinese bank (China Construction Bank, Bank of China, Industrial and Commercial Bank of China and the Agricultural Bank of China) in addition to 7 major companies such as Alibaba, Tencent, and Union Pay.
According to Forbes, the Cryptocurrency will be launched on November 11th, the very famous day as Singles Day for big sale mainly by Alibaba on the internet shopping in China. It seems that China strongly concerns Libra’s situation. We should keep our eye on if China really launch their first Cryptocurrency next month, to check the latest situation about Libra.