ZuckBuck – Zuckerberg vs USA Congress

ZuckBuck. It seems that’s the new buzzword in the crypto space. And for a good reason.

Ever since Facebook’s announcement of launching its global cryptocurrency Libra, U.S. regulators have raised their concerns. For months, Mark Zuckerberg has been debating with lawmakers answering questions and trying to get their approval.

Recently, this question got in the spotlight, after Zuckerberg testified on October 23rd before the House Financial Services Committee in the Rayburn House Office Building on Capitol Hill in Washington.

Before even the hearing began, we knew that lawmakers were concerned about whether Facebook should create its own global cryptocurrency.

So, in today’s blog post we’ll talk about ZuckBuck.

The long-expected hearing lasted almost six hours and here are some of the takeaways.

Senators had a lot of complaints about Facebook

Apparently, the hearing wasn’t only about Libra. Lawmakers had a number of questions about Facebook’s way of doing business and its policies. For example, questions arose about why Facebook is failing to stop child exploitation imagery on its platform.

The social network’s notorious data breaches, as well as its roles in political disputes, were also brought up.

Moreover, senators were critical about Facebook’s relationship to users’ privacy and how their data are used for targeted advertising.

And what about Libra?

Congress, naturally, had some questions about Libra as well. Like the one about how Facebook plans to fund and profit from Libra.

The Senators also touched on the question of regulations, and what kinds should apply to Libra. Moreover, lawmakers wanted to know how policies such as refunding fraudulent transactions would work.

And what about Zuckerberg? Well, one of the first things he made clear was that Libra wouldn’t be launched without U.S. regulator’s approval.

He also tried to convince lawmakers that Libra would be independent of  Facebook and that Calibra’s data would be kept separate from the social network. Zuckerberg firmly stated that he doesn’t control Libra.

During the hearing, he admitted that some of Libra’s partners like Visa and eBay left the project, and blamed the scrutiny for that.

Zuckerberg also pointed out that China would soon have its own version of a national cryptocurrency. He added that regulators shouldn’t block Libra, which will be backed mostly by US-dollar, and can prevent the influence of China’s soon-to-be-launched cryptocurrency.

Final thoughts on ZuckBuck

This time senators were prepared better, and Zuckerberg had to answer some tricky questions.

His attitude was that Facebook is completely separate from Libra.

However, with this pace and progress, it seems unlikely that Libra will launch in 2020.



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