a thousand dollars in libra account, if you're talking about 10,000 in a libra account. and so i think that the amount that we're talking about in terms of average user is critical in order to understand the full scope of how pervasive this kind of action is going to be and i want to go through why that so critical. you have 20 founding members. a lot of big shot companies that have come together, seem iing overnight and under the radar and the white paper you submitted says you'll have 100 members and n the second half of 2020, which is a year from now. that's 72 members. you're going to triple your growing in one year and you don't even know what the average libra wallet will hold. just going to pretend that figure is some unknown number but we're going to bring in 72 new players. are any of the new players fortune 500 companies. >> yes, congressman. >> how are you able to convince visa and mastercard and new fortunate 500 companies to sign up to something without know the average user rate. >> i want to respect any say i'm not hiding anything. i'm here responding trut

who gets to use co-libra and libra? >> anyone that can open a colibra account, goes through kyc in countries where we can operate. >> this is a $20 bill. who can use a $20 bill. >> yes, congressman. >> who can -- better question, who can't use a $20 bill. >> the answer to your question is anyone -- >> host: everybody can use a $2. this $20 bill doesn't discriminate on anything. you can be a murderer, say horrible things, say great things. this $20 bill can be used by every single person that possesses it with regard to your network. can milo or louis farrakhan use libra? i bring that up because those two individuals have been banned from facebook. >> congressman, first, i want to say that are -- simple question. give me -- we only have five minutes. you have to answer a question so we can vet what you want to do. >> i know but we must be thoughtful so i'm trying to respond appropriately. i want to stress that platform that enables you to communicate and share ideas, while facebook, we believe, i is a platform that accep

libra is not a crypto currency. i'm not here to talk judgment and i commend altruistic aspirations but they are just that, aspirations. first, it is decentralize meaning no entity or group has the power to block or send through the network. it will have the ability of censored transactions. second, bit coin is its own asset backed by its own scarcity and demand. there is none that hold assets that give bit coin value. libra is backed by assets that are a regulated activity. lastly, bit coin's permission list meaning anyone in any part of the world has the ability to enter and exit the network without requiring permission. the libra network is controlled by a private group who will determine who has permission to access the network. it supports thousands of companies all around the world. libra benefits one entity, facebook. facebook is not a public entity. it's a privately owned for- profit company. libra may represent an exciting opportunity for bit coin but cannot and should not be compared to bit coin. like the i

so, how much has the facebook invested in the formation of libra, the libra and the libra investment token that will earn a share of interest? >> congresswoman, this investment hasn't happened yet. we are in the days of ratifying the charter with other members of the association. and then, members can decide how much they want to invest, and we will take part in that process like every other member. >> -- i yield back. >> the gentleman from ohio, mr. gonzales is recognized for five minutes. >> thank you, madam chair. thank you mr. marcus for being here. i want to jump right in. so, i think what today's discussion is really about is trust. and whether we can trust your company. i think you're pretty low on the trust spectrum, currently and for very good reason. but, essentially, what we are talking about on the association side is the governing body of libra, correct? >> yes, congressman. >> and, of the members today, how many did you cancel it? >> i'm sorry - >> how many did you recruit? a many did facebook recruit? >> congressman, we approached a wide range of company. >> how many d

the libra association will cover the blockchain network and administer the libra reserve. they will establish the rules of the road and will prioritize privacy and consumer protection. it will implement safeguards that require service providers in the libra network to fight money laundering, terrorism financing and other financial crimes. we expect safeguards will at least meet if not exceed existing standards and improve integrity of the global financial system. when fully formed, we expect the libra association to include 100 verse members, facebook will only have one vote and will not be in a position to control the association. thewill facebook or association position themselves to compete with sovereign currencies or interfere with monetary policy. in fact, the libra association will work with the fed and other central banks to minimize the risk of any competition with currencies or interference with monetary policies. these areas are properly the province of central banks. finally, i would like to turn to facebook's role in establishing and realizing the potential of

the libra association will govern the libra blockchain network and administer the libra reserve. it will prioritize privacy and consumer protection and implement safeguards that require service providers in the libra network to fight money laundering, terrorism financing and other financial crime. we expect these safeguards will at least meet, if not exceed existing standards and improve the integrity of the global financial system. when fully formed, we expect the libra association to include 100 diverse members. facebook will only have one vote and will not be in a position to control the association, nor will facebook or the libra association position themselves to compete with sovereign currencies or interfere with monetary policy. in fact, the libra association will work with the federal reserve and other central banks to minimize the risk of any competition with their currency or monetary policies. finally, i would like to turn to facebook's role in establishing and realizing the potential of libra. to facilitate libra's use, facebook has established a s subsidiary known as

hat is a libra >> congressman, libra is a digital currency. a reserve-backed digital currency. >> is that a security? >> we don't believe it is, congressman. >> is a commodity? based on current u.s. law, i believe it might be a commodity but we see it as a payment tool. >> is it a an exchange traded fund? >> it is not. >> it is none of the above in any pure form, like other digital currencies, correct? >> is designed to be a payment tool. above inis none of the our current regulatory structure, what i'm getting at is how does it comply with regulations? >> congressman, the way we comply with regulations is in a number of ways. as far as the calibra wallet is concerned, it is registered as a money services business with treasury. it is applying it has received a number of state licenses and will operate the same way other wallets operate. as far as -- >> i am asking about libra. >> as far as the libra association is concerned, these are active conversations we are having with working groups at a, the swissinm financial regulator. >> there is te

if libra was used for a similar transaction, would the libra association, the group that validates libra transactions, freeze the assets of such sanctioned individuals? >> senator, first i really want to stress the fact that if we don't lead others will and as a result the transactions that you highlighted and listed will happen on a network where we will have no jurisdiction and no reach and no ability to have any -- exert any control for national security purposes. as far as libra is concerned, naturally because libra despite the fact that it will be headquartered, will be registered with fin sin, we will collaborate, we will have an aml program and will ensure that on and off ramps are properly regulated and as a result those types of activities should be extremely hard to -- >> but my core question is being -- having that individual identified to you, the type i just described, would you freeze the assets of such a sanctioned individual under your system? >> senator, the way that this would happen and the way that the system is currently contemplated, it would be the role of the big

in the libra tokens which are distinct from libra coins, the holders of the libra and i would suspect in the event of an insolvency of the reserve, there will be no money transferred to the users of the libra. essential note of what will become an ecology -- [inaudible] -- is the libra association based in switzerland. it will exercise control of admission of future members, manage the libra reserve, determine asset managebility for the reserve, decide the protocol for which libra runs and will determine how the architecture will evolve to a permission led system. this concentration of power is unmatched by any meaningful accountability to anyone. the choice of the legal structure means that the members of the libra association will be insulated from liability and accountable only to themselves. they will not be accountable to holders of the libra coins nor to the citizens of countries that create the safe assets used to backstop the libra. facebook plays an essential role in the creation of libra, the first 28 prospect tor members of the association have been recruited by facebook an

if i own the code for a piece of libra, do i own that libra? mr. marcus: yes. >> if i don't the dark web and start offering to trade that, to have any technical way of stopping me from doing that anonymously? mr. marcus: yes. there are on and off ramps and all of the on and off ramps are properly kyced. >> all of them. so once a large fraction of libra would be transferred into self custody and there starts to be significant flow among the self custody entities on the dark web or other places, how do you prevent that from actually allowing things like ransomware? mr. marcus: a very important problem and the way we are tracking and the way the soociation will enable tools that law enforcement and the different wallets can understand where the movements are happening to prevent those issues is going to be one of the ways we'll will address this. going to have to be absolutely dependent on the fact that every single wallet is in a regulatory regime that we trust. is that right? if there is some wallet that does not follow the u.s., are we just out of

, the libra association, ca libra and facebook all interact. what consumer protection apply and potential kbrikss for consumers are with respect to financial loss from fraud or the project's failure? how individuals will be protected and how individual privacy will be preserved. how is sbrkts with the bank secrecy act and other anti-secretariry money laundering protections. and the steps that could be taken preemptively to mitt git risks. despite uncertainties facebook stated goals for the payment system are commendable. according to the world bank, 1.7 billion adults remain unbanked. but two thirds of them own a mobile phone or otherwise have access to the internet. if done right, facebook's efforts to leverage existing and evolving technology and make innovative improvements to traditional and non-traditional payment systems could deliver benefits such as expanding access to the financial system for the underbanked, and providing cheaper and faster payments. still, libra is based on a relatively new and continuing evolving technology in which

how the libra ecosystem interacts with the bank secrecy act and other regulations and in ways that libra could threaten financial stability and those preemptively to mitigate risk despite the uncertainty, facebook stated goals for the payment system are commendable and according to the world bank , one.7 billion adults remain unbaked and two thirds on a mobile phone or otherwise have access to the internet. if done right the efforts to leverage existing technology to make innovative improvements to traditional and nontraditional payment systems could deliver material benefits such as expanding f access for the under banked and providing cheaper and faster payments but still libra is based on a relatively new evolving technology it is not entirely clear how existing laws and regulations apply i am interested in its implications for the protection and privacy of individuals data. facebook has massive reach and influence within society with 2 billion active monthly users and access to vast amounts of personal information including those received from users and information derived from their

would enable computer payments via blocked change acknowledging it to make libra less volatile than bitcoin facebook plans to back it with a basket of real world currency is like the u.s. dollar the euro and the japanese yen what also sets libor apart from bitcoin and the likes is that it would be backed by big companies including visa master card and pay pal facebook says that more than a dozen partners will help built fund and govern the libra system the baseball copes to raise as much as $1000000000.00 us dollars from existing and future partners to support the effort and libra is set to launch in 2020 but 1st facebook has to convince regulators on both sides of the atlantic and i'm going to talk to one person now who isn't convinced just yet peter bofinger chair for monetary policy and international economics at the university of the book and of course former member of the german government council of economic experts a good to have you with us on the program so you are actually an outspoken critic of libra why. yes good morning in my view libra is a wonderful business model for

that is definitely the case as well for libra and the libra wallet. emily: to discuss the facebook libra and house judiciary antitrust hearing, david chavern, the ceo of news media alliance, joins us now from washington. in the studio, ashkan soltani, the former cto of the u.s. federal trade commission. if you were still at the ftc, you would be guiding a potential antitrust investigation into facebook and helping the agency make decisions about what to look at and what not to look at. what is your take on a, facebook being in the hot seat today on multiple issues -- cryptocurrency, antitrust, all of the two years of controversy that facebook has been dealing with being lumped into these two hearings -- what kind of actions should the federal government be taken? ashkan: that is a great question. most of the hearings are around both public sentiment and congressional sentiment around big tech. issues arising from a non-surveillance economy that big tech has been known to use in terms of the primary business model. the calls to break up, the calls for

that payment systems, and that's really what libra is, libra is much more of a payment system like a paypal type of thing than it is a digital currency those, as long as facebook plays by the same rules that everybody else does, i did feel he could embrace it he did say it seems like they have a lot of work to do >> brian, thanks so much see you tonight on fast money at 5:00 >> all right, now let's get to ylan mui in washington, d.c. you have been listening to this, and of course, this is the day before david marcus heads to the hill >> that's right, melissa i was scouring through the prepared remarks he intends to present on the hill, and here's the relevant line. it seems that facebook was prepared for this line of criticism. he says the libra association is committed to supporting efforts by regulators, central banks, and lawmakers to insure that libra contributes to the fight against money laundering, terrorism, financing, and more and kind of points the finger at cash transacs as being a place for a lot of illicit activity happens. so this is clearly a line of attack that facebo

so would the libra association -- what would they do if u.s. regulators wanted to enforce sanctions on certain individuals, but other global regulators did not how would the association determine which set of rules to comply with? >> senator, that's a really good question and one that we are in active discussions with a number of regulators including treasury my understanding of this and the way that we are currently thinking about this is that actually the way to properly police and control the network is through, one, the off and on ramps and, two, all of the -- >> well, i'm going to take your word that you're not going to act before you have all these questions resolved if not, what libra could be is the wild west of crypto currency where countries looking to avoid u.s. sanctions, and we can't have that. >> i agree. >> thank you, mr. chairman welcome. one of the benefits of going last is you get to hear your colleagues' comments i want to make a couple of comments i hadn't planned to make otherwise senator kennedy rightfully pointed out face

david marcus, who will oversee libra for facebook, will be getting a grilling? what has facebook got to do to convince regulators and even the white house that they can go ahead with libra? he has a big task in front of him. there are lots of concerns about facebook? track record on privacy, i think we will see lots of criticism of facebook broadly, a lot of distrust about whether they can deliver on the promise of helping financial inclusion, and there is a big education gap. i think explaining blockchain technology, its promise, what it can do to help with money—laundering, will be a tall order over the next couple of days for people just trying to land political shots. we should watch this space, thank you for coming in and explaining, and we will keep you across how that progresses in congress later today. the interest in plant—based food that looks and tastes like meat has got investors salivating and entrepreneurs busy trying to cook up new products. but are meat alternatives really the future of food? samira hussain puts the new wave of vegetarian far

they are scared that libra can take away some of that soft power. as you explain, money is power and libra could undermine the traditional banking system, the ability for central banks to have levers, monetary policy, all of these issues. what about the big criticism that everybody comes up with when it comes to cryptocurrencies, libra included, that it can be used easily for money laundering, buying drugs, bad actors, to even traffic humans. what about that criticism ? actors, to even traffic humans. what about that criticism? that is, to some degree, true for some cryptocurrencies. for libra, because there will be centralised control, at least in the early stages, according to facebook, they can design it in such a way that they can put in anti money laundering measures, know your customer regulations that apply to banks and so on, they can apply it to this. anybody that signs up for a kind of wallet, libra wallet, we'll have to say who they are and provide evidence, and that kind of thing. we see this kind of buying and selling goods used widely

as far as the libra network is concerned, we will have a program as well, and despite the fact libra association will be based in switzerland, it will register with the fed and comply with practices. senator: i'm glad you brought that up because that was my question with the association, would it fall under the bank secrecy act jurisdiction? mr. marcus: the association will not actually touch consumers. it will just organize it. senator: who will be subject to be bank secrecy act act? mr. marcus: the calibra wallet and all the while it's operating under that jurisdiction will comply with dsa, will have perform and aml programs, and we are engaged with treasury to make sure the setup of the not going tot only take a step back in terms of the secrecy and programs, but it because of the way we are implementing and configuring the network. senator: you are currently talking about getting signoff on how to address money laundering? mr. marcus: we are. senator: i appreciate you providing more transparency around that. let me just say, this is a new day and age. cash andomes to carrying aro

lawmakers grill a top facebook executive over the company's planned libra cryptocurrency. if the tech giant can't convince washington to trust it what are the odds it can sway regulators around the world. also on the show the good times continue for 2 top u.s. investment banks reported solid earnings but it's not all positive news on wall street . and a new space race is preparing for liftoff and a german firm stand to profit from nations and companies lofty ambitions. this is your deed of your business report i'm stephen beard's in berlin thanks for joining us facebook executive david marcus told the new york times last month that the company's new cryptocurrency libra could be quote a profound change for the entire world and quote on tuesday markets delivered a much more subdued message to u.s. lawmakers libra wouldn't threaten the current monetary system and it wouldn't seek to replace sovereign currencies senators were skeptical to say the least take a look consume david marcus head of facebook's lever a subsidiary for a face to panel of senators who weren't prepared t

that is definitely the case as well for libra and the libra whilallet. emily: to discuss the facebook libra and house judiciary david, theearing, ceo joins us now from washington. ofthe studio, the former cto the u.s. federal trade commission. if you were still at the ftc, you would be guiding a potential antitrust investigation into facebook and helping the agency make decisions about what to look at and what not to look at. what is your take on a, facebook being in the hot seat today on multiple issues -- cryptocurrency, antitrust, all of the two years of controversy that facebook has been dealing with being lumped into these two hearings -- what kind of actions should the federal government be taken? guest: that is a great question. most of the hearings are around both public sentiment and congressional sentiment around big tech. arising from a non-surveillance economy that big tech has been known to use in terms of the primary business model. the calls to break up, the calls for data privacy laws and concerns around libra are around this idea of the

would enable computer payments via blocked change technology to make libra less volatile than bitcoin facebook plans to back it with a basket of real world currency is like the u.s. dollar the euro and the japanese yen what also sets libor apart from bitcoin and the likes is that it would be backed by big companies including visa master card and pay pal facebook says that more than a dozen partners will help built fund and govern the libra system the facebook cops to raise as much as $1000000000.00 us dollars from exist. sting and future partners to support the effort and libra is set to launch in 2020 but 1st facebook has to convince regulators on both sides of the atlantic and i'm going to talk to one person now who isn't convinced just yet peter bofinger chair for monetary policy and international economics at the university of the book and of course former member of the german government council of economic experts a good to have you with us on the program so you are actually an outspoken critic of libra why yes good morning in my view libra is wonderful business model for faceboo

facebook's new digital currency libra is facing a backlash regulators from the u.s. and europe are rethink but the cross africa cryptocurrency experts say the advantages outweigh the wrists and ordinary citizens across the continent to profits. power sportswear maker nike finds out what happens when one of your famous brand ambassadors goes rogue on your products because he thinks it's prices to. google's made in germany how a german family company became the key supplier of traditional clothing in west africa. his business africa and the. u.s. lawmakers have urged facebook to hold its cryptocurrency plans time to investigate the wrists poses to the global financial system regulators and europe also call for closer scrutiny meanwhile advocates say the facebook currency would be a boon for the millions of the so-called unbanked people across africa but concerns are also growing currency with the power that could develop could easily derail weak currencies across the continent and denies central banks control over monetary policy. introducing libor a new global currenc

they are looking at libra now. they have not really dealt with bitcoin. >> think of the problem libra solves it's such a brilliant idea here's why it will work. >> you don't think it will work. >> no. >> here's why it will work >> it will work like paypal or -- >> let's take mexico, canada and the united states. i'm an investor i want to put on a trade with mexico and canada to get north american exposure today, which i tried to do last month, i want to move a large amount of u.s. dollars into canadian do you know how much pic shfricn there is to do that? i have to find a trader, buy the index in canada. with libra, the potential the canadian government agrees to monitor it, the u.s. agrees -- >> so you think it is good >> i do. they're basically saying regulate us. so that i can say i'll put $5 million into this currency i'll move a million up into canada a million in mexic i never have to leave leeb brachlt i can buy the libra. >> i think libra could get regulated and work jpmorgan is trying to do something like

do you think there will ever be a libra billion flair? >> they're running into a lot of problems that are self-made bus ba us of what facebook is and that waive represented over the past decade. it's all about trust you can't have a bank or be a new currency will it get off the ground there are things i like about it the idea of it is fantastic. it's crypto for the masses, it's not christa for the masses >> i like it will make it easier to find a different way. >> they're pretending it's a whole way to do it >> that's good it's crypto for the masses, it's not crypto for the masses. what are you saying? >> i'm saying it's not really crypto >> it's not peer-to-peer >> either it is or isn't >> the idea of digital money >> that's my favorite thing. alternate cats are in the business >> that appeals to me. >> market is a control thing >> right >> it's based on the fiat. >> exactly they're basically saying we've paid things before >> how do you trust that >> the great iron my i want democrats to know about this jp morgan wants to do more abmoe

introducing libra a new global currency designed for the digital world facebook has promised finance for the future with its new crypto currency and i'm saying its arrival mark zuckerberg said leave would empower billions of people even those without bank accounts will be able to send money around the world with these what's more facebook says libra will be what's called a stable coin meaning it will have none of the volatility associated with bitcoin and other crypto currencies it says it will ensure that by linking its value to other established global monetary systems. major corporate players are already backing libra even if some of the world's financial leaders are not. bank of england approaches libor with an open mind but not an open door. and now a group of u.s. lawmakers has written to facebook asking them to put their crypto currency plans on hold until congress can assess the risk it poses nevertheless facebook's plans to disrupt money continue to progress with libra expected to begin filling digital wallet in early 2020. within the studio is chris cleverley an entrepreneu

>> senator, libra is not meant to compete with bank accounts. well, for instance, not pay interest it's like cash, digital cash. >> that's avoiding the question. do you trust it so much you are willing to have 100% of your compensation paid to you in that currency, which it could be if you decided it could. >> senator, if your question is whether i would trust all of my assets in libra, the answer is yes, i would. >> my question was do you trust this enough to make your compensation paid fully in your currency >> senator, i would, because it is backed one for one with a reserve. >> you could have said yes at the beginning of the question. >> senator, with respect, i wanted to clarify we're not trying to compete with bank deposi deposits >> let me finish with the last question you said you're open to feedback about your company creating a new currency i've told you i think this is a bad idea the republican chairman of this committee raised concerns, the democratic chair maxine waters in the senate and house has demanded you give up on this projec

coming up, no love for libra on capitol hill. jay powell says he has serious concerns about facebook's cryptocurrency. plus you will hear from the global chief diversity officer. she tells us how they plan to double the number of female employees globally in the next five years. internet for all, it is going to take thousands of satellites to do it. will the price of global broadband be a polluted night sky? we will take a look at an emerging debris problem. to our top story, facebook plans to create its own crypto muchncy, libra not getting love from u.s. lawmakers, in fact, getting skewered. you can now add fed chair jerome powell to that list. take a listen to what he told the financial committee earlier. while the project -- libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability. these are concerns that should be thoroughly and publicly addressed. facebook has a couple billion plus users. you are looking at the possibility of a very broad adoption and if there were

i think foreign countries could find it difficult to effectively regulate facebook, libra, orca libra, it isn't clear the federal reserve, other u.s. regulators have the authority to regulate you yesterday, the swiss regulator that you're saying would regulate you actually said that it has never been contacted by facebook about this project. so, mr. marcus, you responded to a request by members of this committee for a moratorium on your activities by stating you would continue to work with regulators before going forward. if the regulators like the authority to adequately oversee you, how can you work with them to resolve concerns? will you stop kind of dancing around this question and commit here in this committee before the duly elected representatives of the american people to a moratorium until congress enacts an appropriate legal framework to ensure that libra and calibra do what you claim it is intended to do, which is to serve the public's good? let me just say that we are all in support of innovation it's not one side of the aisle versus another side of the aisle. but if you t

i think facebook gets that so -- >> so you effectively think though libra -- this libra organization though becomes a bank, becomes a chartered bank >> i don't know that it becomes a chartered bank that's a fair question, right? unlike other digital currencies, this is backed by a basket of currencies so there's this intermeadation role. it's very different from traditional deposit taking and lending. that's a fair question i don't know the answer to that yet. >> where do you stand on bitcoin and how it differs from this >> so what strikes me as one of the obvious huge differences, right, bitcoin is fascinating to me but i don't think it's yet become a practical medium of exchange, probably mostly because it's been incredibly volatile something as volatile as that, that really detracts from its ability to be a meaningful, usable currency. well, libra is meant to solve that problem by having it tied explicitly to a basket of currency so if you have the security and the ease and low cost of transactions of a digital currency, which i think they intend to, when you combine it with the s

it is developing a cryptocurrency called the libra. the treasury department has expressed very serious concerns that libra could be misused by money launderers and terrorists financiers. cryptocurrency such as bitcoin have been exploited to support billions of dollars of illicit activity like cybercrime, tax evasion, extortion, ransomware, illicit drugs, human trafficking. many players have attempted to use cryptocurrencies to fun their maligned behavior. this is indeed a national security issue. the united states has been at the forefront of regulating entities that provide cryptocurrency. we will not allow digital asset service providers to operate in the shadows and will not tolerate the use of the cryptocurrencies in support of illicit activities. treasury has been very clear to facebook, bitcoin users and other providers of digital financial services, that they must implement the same anti-money laundering and countering financing of terrorism known as amlcft safeguards as traditional financial institutions. money transmitters of

libra will interface with the banking system. there is going to be a yacht money or -- fiat money or others that back libra. it's going to be a global currency, they will have to at some level deal with regulators and every country in which they want to operate which is why i think part of the appeal may be regulatory arbitrage. that will be a major headache and you have to wonder if the crypto approach is a shortcut. it's a good reason for people to be concerned. emily: what's interesting is that jay powell talked about how the fed has met with people from facebook before this announcement happened. now that facebook has unveiled the plans and the reaction has been what it is, you wonder did facebook miscalculate what the reaction would be? they have been in the middle of a firestorm since 2016. a huge public firestorm. now they are putting a target on their backs. >> did they think that this would distract us from the other conversation about whether facebook is having an improper role in elections? i think it is a very interes

i believe that the libra or libra set up is designed to follow all u.s. regulations for kyc and so forth. so they have aml be the anti money laundering and you know your client's requirements. they've made a commitment to following that. they made the commitment to be within the legal frame work. during today's hearing they made a commitment to get you know lawmakers comfortable with that and before they start the process. >> do you think libra is going to get off the ground? >> i don't know. i hope so. i think they're penalized by the fact that they are facebook. if it was another general organization like a general organization they would have gotten it done. >> a company without the history, it might have been a little easier. we have to leave it there. ben, thank you. >> thank you very much. >>> all right it was a huge moment for mankind and america. still to come here on the 4. we look back at the apolla launch that took place 50 years ago today. >> lots of sunshine out toward the bridge. it made a big come back this morning but clearing out. some ar

introducing libra a new global currency designed for the digital world facebook has promised finance for the future with its new crypto currency and i'm saying its arrival mark zuckerberg said libra would empower billions of people even those without bank accounts will be able to send money around the world with these what's more facebook says libra will be what's called a stable coin meaning it will have none of the volatility associated with bitcoin and other crypto currency it says it will ensure that by linking its value to other established global monetary systems. major corporate players are already backing libra grieving if some of the world's financial leaders are not. bank of england approaches libor with an open mind but not an open door. and now a group of u.s. lawmakers has written to facebook asking them to put their crypto currency plans on hold until congress can assess the risk it poses nevertheless facebook's plans to disrupt the money continue to progress with libra expected to begin filling digital wallet in early 2020. before i let you go cautionary tale for brand

crypto currency a threat to central banks leading g 7 economies say they need to act fast to contain libra before it debuts in 2020 we have to details. and next time you buy a lamborghini take a good look under the hood fakes are popping up from brazil to iran. this is your business report i'm stephen beard's in berlin thanks for watching how seriously are governments taking facebook's plans to launch its cryptocurrency currency libra next year serious enough that finance ministers from 7 leading global economies spent much of wednesday talking about how to rein in the coin they focused on concerns like money laundering and data security but they also worried about what libra might mean for the global monetary system. the castle north of paris provided grand surroundings for the big discussion of the day arriving in shanty financial leaders said they were determined to ensure the regulator reground was prepared for the arrival of facebook's libra the given finance bill g 7 finance ministers and central bankers sitting together here all have grave concerns about facebook's proposals of 7 ce

libra being an example of that. we created a consortium to develop an open standard for stable value currencies to work on block chains and we launched the u.s. dollar coin which is not a basket. it's u.s. dollar coin. it's one for one backing model as well. >> i still don't understand how you fully aggregate that backing. i want to get to a couple more questions. if the libra approach has a basket of currencies, don't you have currency risk there. if you've got currency risk, shouldn't there be some additional information in terms of consumer protections? >> absolutely. there's the risk the shadow marking created. these were all dollar denominat denominated currencies. they weren't new. not to say they wouldn't have 100% reserves. just to say what's the point. we have u.s. dollars. we want more of them. the ped coufed could do that. >> if you have 100% reserves, where's libra going to make money if you have that backstop all the time. where would you put the regulatory authority in the united states if you were to

lawmakers grill a top facebook executive over the company's planned libra cryptocurrency. if the tech giant can't convince washington to trust it what are the odds it can sway regulators around the world. also on the show the good times continue for 2 top u.s. investment banks reported solid earnings but it's not all positive news on wall street . and a new space race is preparing for liftoff and a german firm stands to profit from nations and companies lofty ambitions. this is your business report i'm stephen beard's in berlin thanks for joining us facebook executive david marcus told the new york times last month that the company's new cryptocurrency libra could be quote a profound change for the entire world and quote on tuesday markets delivered a much more subdued message to u.s. lawmakers libra wouldn't threaten the current monetary system and it wouldn't seek to replace sovereign currencies senators were skeptical to say the least take a look. what consume david marcus head to facebook's libra subsidiary kelly for a face to panel of senators who weren't prepared to

libra. there are many questions regarding libra, virtual assets and virtual currencies. i will focus primarily on the concerns the treasury has about growing misuse of cryptocurrencies by money launderers, and financiers and other bad players. going to capital hill, going to congress about the cryptocurrency, libra. in the international community there has been a great deal of activity recently related to the regulation and digital aspects of cryptocurrencies. i'd like to give brief editorial remarks about what we've been doing on this front, since there's lots of interests and then open it up to questions. last month, the libra association, consortium of 28 businesses including a facebook subsidiary is making libra. the u.s. treasury is concerned about it being misused by money launderists and terrorists and financers. cryptocurrency such as bitcoin have been exploited to export billions of dollars of elicit activity like cyber crime, extortion, ransomware, elicit drugs, human trafficking.

crypto currency a threat to central banks leading g 7 economies say they need to act fast to contain libra before it debuts in 2020 we have the details. and next time you. take a good look under the hood things are popping up from brazil to iran. this is your business report i'm stephen beard's in berlin thanks for watching how seriously are governments taking facebook's plans to launch its cryptocurrency currency libra next year serious enough that finance ministers from 7 leading global economies spent much of wednesday talking about how to rein in the coin they focused on concerns like money laundering and data security but they also worried about what libra might mean for the global monetary system. the castle north of paris provided grand surroundings for the big discussion of the day arriving in shanty financial leaders said they were determined to ensure the regulator recrown was prepared for the arrival of facebook's libra the given finance the g 7 finance ministers and central bankers sitting together here all have grave concerns about facebook's proposals and have set themselves

libra would like to be cryptocurrency that is how facebook is styling this but the facts are that libra holds assets, including u.s. dollars and government securities, and is holding the public's funds so i think the first step really today was figuring out what is this and what does that mean for how we go about figuring out what to do with libra. >> and you explained it very well to the house today, meltem, in terms of what it is and how it differs from bitcoin. you make the point that it is different in part because facebook is a closed network, facebook is a multi-billion dollar corporation, facebook will have tremendous opportunity because of libra, but also tremendous responsibility. what is your -- what is your take as a bitcoin expert on whether or not this could be, you know, systemically important, systemically dangerous down the road? >> absolutely. i think at the end of the day really what the question here is, is cryptocurrencies are not going away it has been ten years since the bitcoin network launched the bitcoin network is worth a lot of money you are showing the bitcoi

i think libra could massively compress fees in that market. that would be very good. so i think, in general, libra is a force for good, so really interesting experiment. i'm glad they are doing it in a way that is not just facebook. because of all the headwind that facebook has experienced with the regulators -- but there are many other questions to ask about the practical applications. for example, if you are buying into libra, does that create more opportunities for money fraud or not? i think that is going to be a set of open problems for quite a while. emily: what about the issue of trusting facebook. can we trust facebook to do this? i know david marcus ran paypal for a long time, long after your time at the company, but facebook has showed that in many situations, they can't be trusted by the public. max: i go back to the standing adjusted about facebook in the ad market. it is the job of u.s. regulators to not trust large companies, or any companies. i think that their job is to audit, regulate, and provide equal treatment under the rule of law for everyone. li

>> i think libra and bitcoin are apples to oranges. because it is president trump, i would be remiss if i didn't read another quota of his, the fed's reckless policies need to be stopped. in some respects he has been right. certainly i think chairman powell had it right. be ain is not going to useful currency for the foreseeable future. is it could said compete as a historic value type of substitute, particularly for a younger investor base. if you take that framing and look at libra instead as a bona fide threat to the u.s. dollar, because they are thinking about structuring this with a basket of international currencies and decoupling the fed's influence over that currency envisioned, it seems like libra should continue to draw them attention and higher, because it is on the wrong side of the political cycle. and just because it is a stable value that could truly be an alternative to the mass-market overnight. >> he makes a good point about this. we heard from the cofounder, where they actually talked about this idea that libra in an

why are libra fears unifying g7. plus the secretary-general of the oecd in just a few moments from now. this is bloomberg. ♪ david: this is "balance of power" on bloomberg television. i'm david westin. we turned out to mark crumpton. mark: notorious drug kingpin el chapo says he did not get a fair trial. speaking before he was sentenced , he told a federal judge in brooklyn, new york that his case was stained by germans conduct and complained about decision -- by juror misconduct. and complained about decisions of his confinement. he will likely serve his time in a maximum security in colorado from which no one has ever escaped. wilbur ross is dismissing reports that president trump considered firing him over the issue of a citizenship question on the 2020 census. secretary ross all the reports rumors and tells fox his appearances and tv interviews and other events on behalf of the administration speak volumes. nbc reported president trump told aides he is considering removing wilbur ross from his role after a supr

coin steps versus libra will go beyond financial regulations many central bankers are focused on libra the announcement from facebook we'll have to see how that pans out. >>> president trump says there is still a long way to go on trade talks with china trump reiterated he could still hit beijing with tariffs on an additional 3$325 billion worth o goods which would essentially cover all remaining chinese exports to the u.s that as beijing hits back at trump's previous tweet that claims slows gdp growth shows why china needed a quick deal. a spokesperson said that was totally misleading >>> the trade dispute between japan and south korea continues. and samsung and other top chipmakers are testing materials for manufacturers outside of japan in search of new suppliers. makiko utsuda has more on this story. >> tokyo implemented restrictions earlier this month which requires government approval for exporting certain materials that are vital for chip making. among them is hydrogen fluoride gas. samsung is testing material made by companies outside of japan to avoid disruption in the supply

lawmakers libra wouldn't threaten the current monetary system and it wouldn't seek to replace sovereign currencies senators were skeptical to say the least take a look consumed david marcus head to facebook's libra subsidiary kelly for a face to panel of senators who weren't prepared to pull their punches or facebook is dangerous. after all the times facebook is abuse the public's trust and you know that if you really think people should trust facebook with their hard earned money trust is probably more due and we've made mistakes in the past than we have been working in our continuing to work really hard to get better central banks worldwide have raised concerns that lever could become a rival to sovereign currencies david marcus out and out tonight that was facebook's aim and promised the senate banking committee that the cryptocurrency would not be in anyone's digital wallet until global regulators was satisfied we will take the time to get this right. we expect the review of libra to be among the most extensive ever we are fully committed to working with regulators here and around t

needed to finish and if they don't still i'm determined to prevent facebook's financial instrument libra from becoming a fully fledged currency that would compete with national sovereign currencies because i will never accept seeing corporations become private states. where the ends quarter now in new york so yes lemaire sees a threat we've also heard from fed chief jerome powell he's talked about the risk to the system from crypto currencies like libra so would you say this is a project that could be doomed to fail before it's even started. i wouldn't call it the end yet but i'm also a democrat see i'm here in the united states facebook to at least put the plans of libra on hold and if you look especially at face their track record how they deal with they use their data it's not necessarily picture perfect so there is a lot of opposition to those plans and you can also see it when you look at current cryptocurrency is like a bit coins for example when facebook announced those plans for libra we saw big corn skyrocketing and now that the whole project is in jeopardy if we see actually qu

crypto currency a threat to central banks leading g 7 economies say they need to act fast to contain libra before it debuts in 2020 we have to details. and next time you buy a lamborghini take a good look under the hood fakes are popping up from brazil to iran. this is your business report i'm stephen beard's in berlin thanks for watching how seriously are governments taking facebook's plans to launch its cryptocurrency currency libra next year serious enough that finance ministers from 7 leading global economies spent much of wednesday talking about how to rein in the coin they focused on concerns like money laundering and data security but they also worried about what libra might mean for the global monetary system. a castle north of paris provided grand surroundings for the big discussion of the day arriving in shanty financial leaders said they were determined to ensure the regulator reground was prepared for the arrival of facebook's libra the even finance big g 7 finance ministers and central bankers sitting together here all have grave concerns about facebook's proposals and have se

the potential ramifications of the end of libra, as the libra schedule end nears. jay: i think you said it very well. i think there are $300 trillion plus referencing libor in different currencies. emily: [laughter] looks like congressman scott laughing at himself, getting libra and libor confused. can we trust lawmakers understand what they are supposed to be regulating here? max: this kind of came up during mark zuckerberg's testimony. where you had these super cuts, silly or out of left field questions. i think facebook is going to try to use that answer and say, well, dc doesn't know what they are doing. on the other hand, the fact that people are confused by this and it does affect potentially billions of people, suggests we should all be educating ourselves more closely. emily: i have to know what your reaction to that moment was. joe: it was a funny moment. the question about libor and the replacement is interesting. but you know, i have a lot of sympathy for the politicians. especially on this -- think about it. how many people have you and i interviewed wh