After the six-hour hearing, Xiaozha still seems to be unable to convince the House of Representatives.
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Zuckerberg is being besieged by a group of members when the pie falls below $7,500.
At 10:00 on October 23, US time, the US House Financial Services Committee held a hearing on Libra, and Facebook CEO Mark Zuckerberg was the only witness.
After 18 months, Zuckerberg returned to the hearing, and the theme of the hearing was “Reviewing Facebook and its impact on the financial services and housing industries”. But the real focus of this hearing is Facebook’s cryptocurrency project Libra.
On the eve of the hearing, Libra faced the dilemma of successive withdrawals from partners and continuous pressure from various countries. Libra’s voice was constantly emerging. Zuckerberg’s battle at the hearing was also considered a Facebook fight for Libra.
Under the dilemma, Facebook made a killer. Zuckerberg’s success was caused by the fact that Libra did not do it and the Chinese central bank’s digital currency would do it.
6 hours, 47 members of the legislature took turns, Xiaozha nervous to forget the problem
10 o’clock, the hearing live broadcast officially started.
In the picture, Zuckerberg wore a blue and black suit and sat alone at the witness table, surrounded by many photographers holding long guns and short guns. This scene seems to be 18 months ago. It completely overlaps.
(live screenshot)
In the last hearing, Zuckerberg’s performance was beyond everyone’s expectation, and he cleverly dealt with the torture of 44 members. Even in the worst privacy breach, Xiaozha has circled a wave of powder. In just 5 hours, Facebook has regained its reputation and made Facebook’s stock price soaring.
In the US, the attitude of regulators to Libra has always been unfriendly. Libra’s hearings have long been held in countless games, but Zuckerberg never showed up. This hearing is Zuckerberg’s Once in front of members of Congress to gain trust for the Libra project.
The hearing has not yet officially started. In the live video, the sound of the shutter is constantly being transmitted. The careful netizen found that this time, the small tie changed the tie from sky blue to dark red. Facing the fanatical photographers, Xiaozha seemed to be somewhat uncomfortable. He put his hands on his lap and continued to rub several times. Next, it seems to be alleviating the inner embarrassment.
(On the eve of the hearing)
Afterwards, a 1 V 47 “debating game” with a gunpowder smell opened.
Maxine Waters, chairman of the US House Financial Services Committee, opened the door and said that Libra is a digital currency that challenges the dollar. She reiterated that Facebook should immediately suspend Libra development before all questions are answered.
47 members, each with 5 minutes of conversation with Zuckerberg. This time, the members facing Xiaozha are no longer “squeezing” with old and inconsequential problems, and each is prepared.
Some members have asked questions about Libra from Twitter on Twitter in advance; some members have only allowed Xiaozha to answer “yes” or “no” to controversial issues after a long discussion; others have pointed out Libra with a sharp eye. The pain point, saying that Facebook can not be trusted to hand over the mail or even the phone number, not to give the money to them, in a word, Xiaozha asked dumb.
Under this tight and compact agenda, Xiaozha also answered the questions of the members seriously, but it was difficult to hide the tension.
The 34th minute after the hearing began, when answering a question from a member, Xiaozha said that he was silent for a few seconds, then he smiled and said that he had forgotten the discussion.The problem of the staff, I did not expect to be beaten, the pokes of the members and the audience.
After three and a half hours of the hearing, Xiaozha broke the meeting again, saying that he had drunk too much water and applied for a break of five minutes.
Shaping China into an “imaginary enemy”, Libra is set to cause dissatisfaction among members in Switzerland
Although the topic discussed at this hearing is not limited to Libra, in the pre-disclosed Zuckerberg hearing testimony, Zuckerberg’s most prepared content is related to Libra.
It is worth noting that at this particularly critical hearing, Zuckerberg played a national identity card to US lawmakers. Zuckerberg said: China is quickly taking action to promote projects similar to “Libra.”
Zuckerberg stressed that Facebook-backed cryptocurrency Libra will enhance US financial leadership and help the United States export its democratic values around the world.
In fact, Zuckerberg really wants lawmakers to regard China as an “imaginary enemy” and force lawmakers to make decisions on Libra. Members of the legislature have also been hooked up, and they have seriously considered the threat China poses to the United States. This has become one of the hot points of the members of the hearing.
When a member asked how other countries other than China are exploring the digital currency field, Zuckerberg did not list other countries’ cases. Instead, he pointed the finger at China.
Zuckerberg said in his reply: “Chinese companies will be the main competitors. I am fully convinced that such projects will affect American leadership in the financial sector and our implementation of sanctions worldwide. Capacity. If China’s financial system becomes the standard of more and more countries, then it will be difficult to implement sanctions and various protection measures in the future.”
Then, Zuckerberg also sold an “anxiety” for parliamentarians. He said: After the Libra white paper was released, China immediately experimented with the digital version of the renminbi and planned to be part of the Belt and Road Initiative. Launched in months. If the United States does not innovate, its financial leadership will not be guaranteed.
“I just think that if we don’t innovate, we can’t guarantee that we can continue the same rules and keep the future influential in the world. As a country, we need to innovate,” Zuckerberg said.
Innovating America’s old financial infrastructure, consolidating global financial leadership and promoting US financial development is the vision of Libra in Zuckerberg’s mouth.
Libra claims that his innovation is to help the United States, but has set up its headquarters in Switzerland. In response, many members of the House of Representatives expressed strong resistance.
Principal of the House Financial Services Committee Patrick McHenryThe first question about Libra’s establishment in Switzerland: “Why is the digital currency driven by the blockchain developed in Sweden?”
Zuckerberg responded with an understatement: “The Libra Association chose Switzerland because the local system is more forward-looking.”
Patrick McHenry is obviously not satisfied with this answer. When Xiaozha finishes, Patrick McHenry bluntly, I prefer Libra to stay in the US instead of going to Switzerland. We need to understand what this is and need to control it.
Gooden and Patrick McHenry share the same view. He said: “In combination with the current situation, including you also mentioned the willingness to comply with US regulatory approvals, I think if Facebook really wants to achieve such innovations, why not? Bring Libra back to the US?”
Another member is even more straightforward: “If you want to follow our rules, why are you going to Switzerland? To be honest, you are the big player in this battle. If you decide to bring this thing to the United States, It is completely ok.”
On the issue of Switzerland, Zuckerberg apparently did not give a satisfactory answer to the US lawmakers.
Do not do Alipay for Facebook, but want to hold the US regulatory thighs
At the hearing, there was also a discussion on whether Libra needed decentralization.
Patrick McHenry, vice chairman of the House Financial Services Committee, believes that China has successfully made convenient digital payment software such as Alipay and WeChat payment. He asked Zuckerberg why not make a Facebook version of Alipay to solve problems Libra wants to solve. .
Zuckerberg explained that he saw other competitors around the world creating their own payment platforms. Facebook did not do this because Facebook believes that the US financial infrastructure is out of date. Libra is trying to help rethink the foundations of the modern financial system, not on outdated systems.
This is actually a discussion about whether Libra should or should not be centralized. Previously, the launch of Libra was able to shake the Internet and the currency circle, and more people were expecting the decentralized system. But parliamentarians do not fully hold the same view.
Some people think that it may be easier to link only one currency dollar behind Libra, and Zuckerberg considers that such a scheme is simple, but it is certain that if Libra is 100% linked to the US dollar, Libra may not be as popular elsewhere.
When asked if Facebook is goingZuckerberg’s answer is full of positive energy: if the center fails to meet the highest standards of protection and cannot maintain financial stability or combat terrorist crimes and fraud, then We are not going to create a decentralized thing. We want to work with regulators to ensure we are able to create the highest standards of quality.
Recalling Zuckerberg’s speech at the hearing, he reiterated many times that Libra products will not be released, even if they are part of it, until they have the full support of US regulators.
In addition, Zuckerberg has made an additional commitment that if the Libra Association wants to release Libra without the approval of US regulators, Facebook “will be forced to leave.”
Maybe from the beginning, Zuckerberg may have thought about the path of embracing supervision.
After 6 hours, the MP still does not pay the bill
Even with this proactive approach to regulatory requirements, Libra still failed to hand over a response that would satisfy everyone.
At the end of the hearing, the lawmakers also concluded in good faith that it is important to encourage innovation in the United States. It is also important to create a regulatory environment so that we can innovate here, especially in digital currencies. And new currency transmission methods and other aspects.
But subsequent reports from CNBC have sent relatively negative news. According to CNBC, after Zuckerberg submitted the latest testimony, the lawmakers were still worried about Libra as usual. A number of lawmakers said in an interview after the hearing that they did not see any progress.
The bipartisan members of the House of Representatives expressed dissatisfaction with the lengthy testimony. Members of the House Finance Committee said they did not see what progress Zuckerberg had attended.
Patrick McHenry said: “Frankly, I am not sure what we have learned here.” There are several other members who agree with this view.
The main seat Maxine Waters told CNBC reporters: “We need to get together and fundamentally review Everything that happens today and make some decisions on how to implement the strategy.”
Maxine Waters also said that she did not support the plan at all, did not understand what Libra wanted to achieve, and the project did not receive a “full explanation.”
The statement for six consecutive hours could not impress the members. It seems that waiting for Facebook has a long way to go.
Attachment: Ten Wonderful Speeches at the Xiaozha Hearing Ceremony
1, Libra does not intend to replace sovereign currency and will expand US financial leadership
According to Zuckerberg’s testimony, it stated that China is taking swift action to come up with similar ideas in the coming months. Libra will be mainly supported by the US dollar and will expand the financial leadership of the United States. Libra is not an attempt to create a sovereign currency. Just like existing online payment systems, this is a way for people to transfer money.
2, The dollar ratio in the Libra Reserve is not determined to be 50%
Members ask: How does Libra avoid weakening the dominance of the dollar?
Zuckerberg: Because Libra’s reserves will be mainly in US dollars, I think such a project may extend the US economic leadership. However, it is not yet possible to finalize whether the dollar ratio in the Libra reserve is 50%.
Members ask: What do you think of the founding members leaving the Libra Association, why did they leave?
Zuckerberg: I think it’s because it’s a very complicated and risky project that requires a lot of scrutiny.
4, Libra is a payment system, not a bank or a currency
Members ask: What is Libra and Calibra, is it a bank? Or is it a currency?
Zuckerberg: Member, I think Libra is just a payment system. It’s hard for us to get rid of the impact of the dollar now, and as we talked about in many places, we won’t try to weaken the dollar, but we want to expand the US. Financial leadership.
Member: So Libra is not a currency?
Zuckerberg: It is a payment system.
Member: Libra is a currency built into the Calibra wallet, just like I put my money in the bank.
Zuckerberg: You can think so, but we are not banks.
5, If Libra fails to progress, Facebook will quit but will not control other LibsRa member
Members ask: If you don’t see its development, are you willing to stop this project?
Zuckerberg: If this happens, Facebook will choose to give up, but Facebook does not have full decision, and whether the project will continue to be decided by members of the Libra Association.
6, The Libra Association is recruiting a new independent head, David Marcus is not on the list< /p>
Zuckerberg: David Marcus is running Calibra but not running Libra. The Libra Association is recruiting a new independent head, and Marcus will not appear on the recruitment list of this independent person.
7, Libra trading is free, but Zuckerberg has not confirmed Libra transfer free
Members’ questions: If Libra is fully implemented as a global stable currency, is its transaction transfer free? Can Facebook do not charge any fees?
Zuckerberg hesitated, did not give a clear answer to yes or no, he said: This is our vision, but the actual implementation of Libra will involve international rules.
8, Libra is anchored by a basket of highly liquid currencies that contrast with most banks
Members ask: Someone is Bernard Madoff, who has pretended to be a successful person and is now serving 150 years in prison. His Ponzi scheme involved a total of $64.8 billion. Then those who support the free market have joined this Ponzi scheme because they are self-proclaimed “laissez-faire.” But once they lose money, they will come to the court, hoping to seize the initiator. So that’s why we have to care if you are the second Bernard Madoff. When things go wrong, we are the ones who get everything back on track. But I want to praise you as an innovator.
Zuckerberg: There are two processes. The first thing that we and other members of the association are doing is designing the system to eliminate those risks. The second is to work with regulators on issues they care about to ensure compliance. The key part of this is that Libra anchors a basket of highly liquid currencies, which contrasts with the way most banks use partial reserves because banks may run on. We need to work with regulators to address their concerns and concerns and ensure that Li operates under the most stringent financial stability conditions.Bra. So we won’t start without approval.
9, If Libra is only linked to the US dollar, it may not be as popular elsewhere
Members ask: Would it be easier to make this digital currency a digital token for the US dollar?
Zuckerberg: My understanding is that there is considerable disagreement in society at this point. From a US regulatory perspective, this is indeed much simpler because we are trying to build a global payment system that works elsewhere. But what is certain is that if Libra is 100% linked to the dollar, it may not be as popular elsewhere.
Members ask: Will you promise not to provide Libra with any other anonymous wallet?
Zuckerberg: We are trying to establish a safe and secure alternative, and we believe that digital payment requirements have the same or exceeded standards on AML and CFT as all other world-class payment systems. I want to make sure that Facebook will do what you say, and our wallet will have a strong identity and can work with regulators. I can’t represent the entire Libra association, but you have my commitment to Facebook.