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7/15, 6:16 PM (Source: TeleTrader)
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Libra's Marcus promises strong prelaunch oversight

The digital currency planned by Facebook Inc. and 27 of its partners is "a payment tool, not an investment," the project's chief David Marcus claimed in a written statement to lawmakers in the United States Senate on Monday. Ahead of a hearing, he added Libra wasn't designed to compete with national currencies and revealed it would be regulated by the Swiss Financial Markets Supervisory Authority (FINMA) as the association is based in Geneva. The head of Calibra, which is making the so-called wallet for it, said the panel has already been consulted and vowed to enable "the broadest, most extensive, and most careful prelaunch oversight by regulators and central banks in fintech's history."

The former president of PayPal, who joined Facebook five years ago and leads the blockchain efforts, agreed with Federal Reserve that Libra must pass a "patient and thorough" process. "The journey to get there will be a long one, and we recognize that ours has just begun," Marcus stated. He didn't refer to it as cryptocurrency, while saying it is different than stablecoins as it is backed through a reserve which holds "a basket of currencies in safe assets."

According to reports by several media organizations, the Federal Trade Commission has passed the $5 billion draft settlement deal with the social media giant and ended the process prompted by the user privacy scandal centered on Cambridge Analytica.

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