Facebook Says It Won't Offer Libra Until It Gets 'Appropriate Approvals'

Libra will not come to users until it is approved by proper regulatory bodies, stated Facebook’s Calibra subsidiary, which is currently the digital coin’s financial service provider. The comments come from David Marcus’ prepared testimony before he presents himself in front of the Senate Committee on Banking, Housing and Urban Affairs this Tuesday.

According to his testimony which was released on Monday, the social giant won't offer the digital currency till they have addressed all regulatory concerns as well as got appropriate approvals. Facebook claimed that Libra is meant to be a tool for payment, not an investment.

In addition, Marcus expresses his agreement with Jerome Powell, Federal Reserve Chairman, that they need to review Libra patiently can thoroughly. Since Facebook announced its cryptocurrency, there have been concerns among European and US politicians due to the social giant’s privacy mishaps in the past few years.

In the rest of his testimony, Marcus talks about Calibra’s responsibilities, which is providing financial services for another digital wallet. He reemphasizes that Facebook will only use the cryptocurrency for transactions within apps like WhatsApp, Messenger, and a separate app.

As stated by the Libra Association - an organization of groups and firms governing, acting as a network for Libra – its goals comply with officials who are concerned about the cryptocurrency.

Libra Association’s Head of policy and communications Dante Disparte said the Association maintains that consumers concerns, regulatory, and financial inclusion aren't competing objectives, but rather in line with its goals to offer a simple international currency as well as financial infrastructure to empower billions of people. At the same time with the preparation of the Libra launch next year, the association also talks with global policymakers and regulators to take their questions accountable.