Zuckerberg testifies / Deficiencies and failures / "American innovation on trial"

Inside Libra presented by Bright Cellars.

Presented by Subscribe | View in browser 1. Facebook CEO Mark Zuckerberg told Congress that he believes Libra is something that needs to be built but Facebook is "not the ideal messenger right now." Facing around 60 politicians on Capitol Hill, Zuckerberg faced questions from the U.S. House Financial Services Committee about the proposed plans for the stablecoin. Since its announcement back in June, global regulators have voiced their concern over it regarding its potential threat to the financial system. However, according to Zuckerberg, Libra could help to improve the lives of millions of people, particularly those who send money to families abroad. In his opinion, "if America doesn't innovate, our financial leadership is not guaranteed." His appearance comes at a time when eight of the original Libra Association members have stepped away from the project. Yet, while the remaining 20 have reconfirmed their commitment to Libra, none have delivered on the $10 million to financially back it. –THE GUARDIAN Why It Matters: Zuckerberg faces a tough time trying to convince lawmakers to get on board with Libra. Not only that, but he will have to show that this could be the perfect opportunity for America to demonstrate its innovativeness, certainly at a time when China is working at launching its own central bank digital currency.       2. Maxine Waters, chair of the House Financial Services Committee, has said that Facebook should focus on addressing "existing deficiencies and failures" before launching Libra. Waters made her opening remarks as part of the Congress hearing that sees Mark Zuckerberg answer questions on Facebook's plans for Libra. Whereas, Ann Wagner (R-Missouri) said that it was "highly concerning" that several founding members had left the project. For live updates on today's hearing, check them out here. –YOUTUBE       A MESSAGE FROM BRIGHT CELLARS Can your taste for tea predict wines you'll like? With an algorithm developed by two MIT grads, Bright Cellars uses a quiz to determine your tastes and match you to wines you're likely to enjoy - delivered straight to your door. The best part? We're giving Inside readers 50% off their first order! Take the quiz now to see your top 6 wines matches.   3. Republican Representative Patrick McHenry (R-North Carolina) has said that the Libra hearing is putting "American innovation on trial" because those in Washington don't understand it. In his opinion, policymakers are "pouncing" on Facebook because they're a big company doing something new. Because of this, it "sends a chilling message to innovation in the United States," he added. McHenry, who called for a hearing back in June, stated, at the time, that he wanted to know what the project was proposing, how they were going to use it, the opportunity, and intention of it. –CNBC       4. The 20 remaining companies that are behind Libra have yet to back it financially. Back in June, when the project was first announced, the original 28 Libra Association members were expected to inject $10 million each into backing efforts. However, it's reported that no agreement has been reached and it wasn't discussed at the first association meeting last week in Geneva. Yet, according to those still within the Libra Association, no timeline has been set for introducing the $10 million fee and that they are likely to invest in the project when asked to do so. The companies that have stepped away include PayPal, Mastercard, Visa, eBay, and Stripe. –BBC       A MESSAGE FROM SMARTASSET People Who Retire Comfortably Avoid These 7 Mistakes Whether you're already retired or still have 25 years to go, working with a financial advisor is a crucial component of any successful retirement plan. However, most people make these 7 costly yet avoidable mistakes when hiring one. See the list 5. Dmitry Peskov, President Vladimir Putin's special representative for IT, has said that if the U.S. blocks Libra it will ban Facebook if the currency is not controlled. Speaking to reporters, Peskov, who also mentioned Telegram's Gram token in the same light, made his comments clear stating that the nation would follow the U.S. in how it handles the stablecoin. He went on to say that if Libra is unchecked, the possibility of a shutdown in Russia and other countries "will increase significantly." Russia has already threatened, in the past, to ban Facebook due to a row over data storage. –LET KNOW       6. Libra was a shock to central banks. That's according to Simon Potter, a fellow at the Peterson Institute. In his opinion, Facebook failed to think about how important the control of currency is for governments and central banks. Given the near three billion users on Facebook's platforms, the concern central bankers have is that Libra could somehow take monetary policy control from them. –FINANCIAL TIMES       7. David Marcus, the head of the Libra project, has said that it's open to currency-pegged stablecoins for Libra. Speaking in front of a banking seminar in Washington earlier this week, Marcus said that instead of having a "synthetic unit," it could have a series of stablecoins, such as a euro, dollar, or pound stablecoin. He added, though, that currency-pegged stablecoins aren't Libra's preferred option. The plan is still to launch it next June, but Marcus noted that it would only do so once it had answered all concerns and received "proper regulatory approval." –REUTERS       8. Jaime Dimon, JPMorgan Chase CEO, has voiced his opinions about Bitcoin in the past. Now, he's voicing them about Libra. Speaking last Friday at a conference hosted by the Institute of International Finance in Washington, Dimon stated that while Facebook's proposed stablecoin was a "neat idea," it would "never happen." –BLOOMBERG       This newsletter was written and curated by Rebecca Campbell. She has been writing and reporting on various industries for the past 10 years, more specifically tech in the last three. Connect with her on Twitter. Editor: David Stegon (senior editor at Inside, whose reporting experience includes cryptocurrency and technology).       Ad Bright Cellars is the subscription matches you to wine with a quiz. Get started now!

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