Since Facebook’s Libra White Paper was published on a June 18, there has been much scrutiny, analysis and speculation, as many people across the private and public sectors try to understand the potential implications of this sweeping proposal. While the White Paper provided relatively little detail, the appearance of Libra’s David Marcus before both the Senate Banking Committee and the House Financial Services Committee this week in Washington marked a significant event, and brought some issues into clearer focus.
While there still remains as many (or probably more) questions as answers, the IIF has summarized the key themes that emerged from those hearings. It needs to be stressed that while Libra is being developed with an intended global scope and headquarters in Switzerland, and these congressional hearings necessarily have a US-centric perspective, but these themes serve as an informative forerunner of some of the further issues and developments to monitor over the coming months.
In summary, the key themes we identified from across those hearings were: