Zuckerberg’s Libra testimony: “not going to do anything decentralized”

Yesterday, Facebook CEO Mark Zuckerberg testified in front of the US House Committee on Financial Services on Libra and how big tech companies are affecting global finance. Though the six-hour hearing mainly focused on the platform’s political ad rules and privacy controversies, ahead of next year’s election, many questions on regulating the firm’s cryptocurrency were asked.

Libra vs China’s CBDC

A topic that came up frequently was China’s central bank digital currency (CBDC), which we think is bolstering the nation’s attempt to challenge the dollar. Zuckerberg mentioned the ‘digital Renminbi’ multiple times as an example of why innovations, like Libra, should be allowed to launch. He first brought this up at his testimony. “While we debate these issues, the rest of the world isn’t waiting. China is moving quickly to launch similar ideas in the coming months,” he said. He, too, linked the upcoming digital currency to China’s Belt and Road initiative. However, Zuckerberg and members of Congress failed to mention that the Libra announcement spurred China to accelerate their CBDC efforts. The central bank’s Mu Changchun even released a training course on Libra, warning of its potential effects. But the hearing didn’t come to a conclusion on the topic.

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