Facebook tells US Congress Libra won’t launch until it has “fully addressed regulatory concerns”

Facebook’s Calibra chief executive David Marcus will face the US Congress today, answering questions over the social media giant’s proposed cryptocurrency launch.

The US government are expected to delve into the currency’s design, privacy measures and its potential impact on the US economy.

READ MORE: US government could block big tech firms from offering cryptocurrencies

In a prepared testimony released ahead of his appearance before the Senate Banking Committee today, Marcus states that the social media giant won’t roll out its cryptocurrency until it has “fully addressed regulatory concerns”.

Senators will likely pay close attention to the fact the regulation of Libra will mostly happen in Switzerland, and not in the US.

“To be clear, the Libra Association expects that it will be licensed, regulated, and subject to supervisory oversight,” read Marcus’ testimony. “Because the Association is headquartered in Geneva, it will be supervised by the Swiss Financial Markets Supervisory Authority.”

Libra has so far received support from other tech and financial giants including PayPal, and to date 28 companies including Mastercard, Visa, Vodaphone, Paypal, Ebay, Spotify and Uber have signed up to be founding members of the Libra Association, requiring each of them to invest a minimum of $10 million (£8 million).

However, regulatory bodies around the world have expressed skepticism over the social media giant’s ability to run and regulate a cryptocurrency.

The government of India has proposed a ban on Libra, despite the market being one of the main targets for the currency. 

How lawmakers respond to Facebook’s forays into digital currency will also likely influence how other tech innovators approach cryptocurrency development.

Notably Bitcoin lost $3,000 from its value over the last week.

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