Facebook's Calibra chief responds to Senate committee's concerns on Libra cryptocurrency

By FacebookFOXBusiness

Facebook's cryptocurrency Libra takes on bitcoin

Facebook Head of Calibra David Marcus on the social media platform's new cryptocurrency Libra.

David Marcus, the head of Facebook’s financial services subsidiary Calibra, called for collaboration with lawmakers in a letter to senators following the company’s new digital currency Libra.

Continue Reading Below

Marcus addressed the letter to the called Sens. Mike Crapo, R-Idaho, and Sherrod Brown, D-Ohio, the chairman and ranking member, respectively, of the U.S. Senate Committee on Banking, Housing and Urban Affairs.

“We understand that big ideas take time, that policymakers and others are raising important questions, and that we can’t do this alone,” the letter stated. “We want, and need, governments, central banks, regulators, non-profits, and other stakeholders at the table and value all of the feedback we have received.”

MORE FROM FOXBUSINESS.COM

Facebook's cryptocurrency Libra is slated to launch in 2020 and be a profitable venture for the social media platform. However, Facebook has received push back over its poor record on privacy and dominance in social media, message and related businesses. Last month, Brown said the digital currency will give the tech giant unfair competitive advantages in collecting data on financial transactions as well as control over fees.

"Facebook is already too big and too powerful," Brown said at the time.

Marcus is slated to testify before the Senate Banking Committee regarding Facebook’s cryptocurrency on July 16. The following day, the House Financial Service Committee will hold a hearing on the digital currency. House Committee Chairwoman Rep. Maxine Waters, D-Calif., asked Facebook to put the Libra currency plans on hold. She said Facebook is “continuing its unchecked expansion and extending its reach into the lives of its users.”

In the letter, Marcus said Calibra will offer its consumers anti-fraud protections and vowed it will protect user privacy. He also wrote Calibra will “not share account information or financial data with Facebook or any third party without customer consent, except for data shared with law enforcement and regulatory agencies as required by law, such as for AML, CFT, and sanctions purposes.”

“I want to give you my personal assurance that we are committed to taking the time to do this right,” Marcus wrote in the letter.

CLICK HERE TO GET THE FOX BUSINESS APP

Marcus told FOX Business that the cryptocurrency has garnered the support of 27 companies including Visa and Mastercard. He said the new currency is stable and will be run on blockchain technology.

FOX Business’ Julia Limitone and The Associated Press contributed to this report.