Work here. There will be some work at the network level. The architecture of the system itself that supersedes all of the individual work the countries are doing to implement this. And then the members of the associations who are transacting using the Payment System will be responsible themselves for implementing and following those rules. Have a big effort to verify identities and authenticate them. We do this today if someone wants to run political ads or run a large page. I appreciate that but a , is goingth facebook to go in. Your major hack for millions of users that have gone through what assurances will actually be in place to make sure users with the most Sensitive Information in terms of finances, will be protected. Thanks. Erberg the Payment Information that people share is stored separately from other information in our services and all of our information is stored securely. This is especially secure. I do not think we have had an issue with this today. We do take payments for a number of things, ranging from fundraisers to people buying ads. We have a secure here in our data center focus on data prevention. In a payment area. One of the issues im concerned about is are we going to be able to use it to buy anything legal in this country . Would you support that . The intent would be to have give people as much control is what they want to do as possible. There are certain types of good better regulated. Then there are certain content policies. Screen much further down downstream and where we are now. To create a system that works and get the appropriate regulatory the committee will tacess fo recess. We have been listening to Mark Zuckerberg, the ceo of facebook. The for theom over House Financial Services committee. He was asked about the cryptocurrency libre and exactly what is involved with that. He said facebook will not go forward unless they get fromatory approval regulators. This is something facebook was a bitcoin with lawmakers about before. There was some suggestion they might go forward anyway. He also said he is talking to regulators from 30 jurisdictions around the world including switzerland to figure how to handle this the best. He was pressed by lawmakers about exactly why we need a new currency and why cant we do this with u. S. Dollars, why do we need need a new currency . Need need a new currency . He emphasized in the United States and around the world, this is something facebook could step into and help with that bank. Is that really why facebook is doing this or is it to make money . Which they have a fair amount already. In lengthy on that to the question of, is this the right time and right message, assuming as aed something cryptocurrency, is this the right way to do it . He admits this is not the perfect time for facebook. Many issues from privacy to issues of political ads, and he admits it is not the perfect time or the perfect messenger. Was pressed on other issues from child pornography and actions done on facebook to issues of to the extent it blitzes thatected due to the u. S. Financial system that isnt undermine want to turn to the chair on the telephone unit an expert on the telephone. What is the cryptocurrency, is it a commodity . What is it . What is it . I recommend we use the term Digital Asset aspect. If we look at libre, there is a questions a question of author offering it to security. If it is being used as a means it looks like a currency and will be treated as such by the , thed states treasury financial crimes enforcement network. They can be regulated as a commodity pool. What were hearing from facebook in the association now is they are looking at this as a means of purchasing goods and services so it looks like a Digital Currency. Lets pick up on that and take mr. Zuckerbergs word. Him he says it should be as easy and secure is using a text message. Sounds like a Money Transfer system. Who regulates that and how . States, youited would have part of the nicest treasury would regulate activities as a Money Exchange or money transmitter. You either have central banking or monetary authorities monitoring as well. What do they require of today . They require a certain balance sheet, the ability to make good on the promise that money will be delivered. Help would be more can to entities are regulated and other firms that transmit funds, paypal, for example. States, thed backbone of the regulations would be having in place policies and procedures to reduce the use of the system for Money Laundering and that would be a key point for libre, the libre Association Going forward. Please stay with us, richard levin. We want to bring in our chief washington correspondent kevin on capitol hill. You listened to two hours of testimony so far. How many surprises from the point of view of people asking the questions have there been . Kevin there have been several surprises, coming at a time when zuckerberg at one point said in explicit terms that he is unsure if libre is actually even going to be successful. I would quickly make three points. Mark zuckerberg greeting a largely bipartisan skeptical of lawmakers who have raised Serious National Security concerns, civil rights concerns, and freedom of speech concerns from various ideological viewpoints. Mark zuckerberg pushback against the notion of Financial Institutions withdrawing their support such as paypal, visa, and mastercard, saying they are not willing to take the market anywhere around the world unless backing of u. S. Regulators. I spoke with a prominent republican on the panel hallway just within the last hour or so who told me that was something many republicans needed to hear. That Mark Zuckerberg was not going to be moving ahead without u. S. Regulatory support. Points to note. Republicans and democrats are very skeptical about how Mark Zuckerberg has handled the litany of questions washed against him and facebook as a whole. The second is this is a very different Mark Zuckerberg that we have seen deal of washington politics over the past year or so. Trying to push out how they deal with regulation, it has been quite a contrast to two the 2016 days of facebook. Please stay with us. Welcome, sarah. Why is it is important for facebook and Mark Zuckerberg . If you take his prepared testimony is a word on this, he does because he wants to improve income inequality and wants to increase america passes financial prominence in the world. We heard hes really doing it because of competitive threats. That will spread to other parts of the world first. How do they make money . Normally they do it off of advertising. Facebook wants to draw more people. Whether that is through the marketplace, selling your couch whether that is through whatsapp, nasty people outside of states, they want to be something you check multiple day for asghout the many minutes as possible. Everything you do to build up to that is the most important. I want to come back to you. You call this a Digital Asset. It would have a value that would go up and down and you can invest in the digital affect, as you call it, and make or lose money and it would be available to the public. To analyzehave whether what libre is doing is security based on what dates to orange groves. One of the biggest problems with the entire Tech Industry is dealing with now is there living when people wait as much as i did in professional football. The technology has advanced and the regulators are having are trying to cram a square peg into a round hole. I do not think there is much hope that congress and the president will agree on how to amend securities and commodities to bring them into the 21st century. With that said, the fcc will look at, is libre being offered to the public in a way to raise capital . It does not appear so. Then the next question is is investmentcollective in order to allow people to have the opportunity to see an appreciation of value based on a bastion of securities, they are not talking about doing anything with securities. There talking about creating one currency backed by a basket of other currencies. I think there is a good argument this is not a security but i think the big issue they will deal with his regulation as a Money Service business. Mark zuckerberg is reentering the hearing room. Coming back in, a lot of photographers are taking pictures. How much farther do we have to go . At least a couple of more hours. I would pick up on something sarah noted which is that this isiance that Mark Zuckerberg trying to get between lawmakers and more urban communities and more Rural Communities, that is a tactic financial communities have tried to use on Financial Regulation trying to build the coalition. I believe we will go back to the hearing because Mark Zuckerberg is behind the microphone. We have the first question. Answers from you earlier. Going through a list of he wanted to know if you would wait for their approval. We went through a whole laundry list of them. Your answer was, for the parts that apply, yes, we will go seek their approval. Other times, you have said we will get their approval. , area facebook standpoint you just willing to seek the approval or will you wait for the approval before anything is launched . It is the latter. Thank you for the opportunity to clarify that. We will not launch anything until we get the approval. If it is ok, i want to take a onent to add some context one of the other questions asked in catching up with my team. As long as it does not take too long. You have 30 seconds. Mark the question before was around whether we implemented changes to ask targeting to make it so people can no longer age, gender, and zip codes in other categories and housing employment and credit opportunity ads. We have implemented the change. The primary surface for buying ads on facebook is part of the agreement in the settlement we agreed to. Thank you for the answer. The reason youre in our committee is we may have issues about the ads you have allowed, where the russians were involved, disinformation. Libree here the cousin of , the Financial Services committee. Mr. Marcus was here to testify and we want to understand what this is. Are you arrency, bank, what is the association . I appreciated those questions we all like innovation but it seems like the innovation will be houston in association in switzerland, not in america. The constitution is the one that starts all of this with article one section 85. Thecountry is given obligation to coin money and regulate the value thereof. Do you consider libre to be money . I consider libre to be a Payment System. There are two ideas that can sometimes be hard to seize out. We certainly do not seek to undercut that. We want to extend American Leadership around the world. You dont consider to be money . I consider it to be a Payment System, an area where it is relatively stagnant. I appreciate that. Im just starting with the constitution, which puts the responsibility on us to coin money. Im trying to figure out, lets isto the next step, which the wallet, which in my opinion is the bank. Is that not right . Sorry, i did not understand. The currency is in the wallet mark yes. It is like me having my money in wells fargo bank. That is the problem. That is what we are facing here. Trying to understand what this thing is that you all are creating. I appreciate creation and would like it to stay in america not go to switzerland. Putting in association together, and as i have been thinking about this, it reminds me of two movies. Doom and the president s analyst. If you want to be talked about to talk about either one, im happy to do it. Everybody had information or the phone company had information on everybody. We need to know what this is. We have to regulate this. I am not sure you guys understand what it is. Thank you. The gentleman from texas is recognized for five minutes. Your biography is a textbook example of capitalism and im a Small Business owner. Im amazed at what you have done. After years of hard work, you onesformed what started out of the largest and most powerful Technology Companies in the world. It does not diminish or you have built. This type of hard work is rewarded. Before i continue, i want to ask you a simple question. I would consider myself a capitalist. Thank you. It is great to hear that. You have received a lot of scrutiny for taking on something as bold as the libre initiative. Drawing the attention of every Bank Regulator the world, i do not think there is anything wrong with asking questions to ensure that product is not used for illegal activity. It still rings true today. Private sector always seems to get it right most of the time. There can undeniably be benefits to bring in this product to market. No matter what policies we enact, the private sector will bring Game Changing technologies into existence. In the Federal Reserve or another federal entity. Not surerberg i am im here to say that others shouldnt try to put their own ideas forward. I just think it is part of the american system, we should encourage more people and even efforts from the government to try new things. This is an area where our system has been stagnant. This ist is the case, an important area. There will always be risks. We need to diligently address those risks. This approach, im not saying is absolutely very best one. I wish other people were trying to do things. That is important for helping to disturb people. It would put a selfimposed handy to handicap on American Companies and entrepreneurship which we talked about make this country great. Compared to counterparts around the world. I think we need to repeat this. What other countries, primarily china, are doing in the Digital Currency space question mark space . Mr. Zuckerberg i think right now, especially in regard to libre, Chinese Companies would be the largely competitors. There is an ongoing Publicprivate Partnership in china where they are very focused on building is an exporting and around the world, and i know there are a lot of that i think are completely valid about how a project like this would impact americas Financial Leadership and our ability to impose sanctions around the world and the oversight on the Financial System in other places. Andink we need to trade off weigh any risks of a new system against what i think are surely risks. If a chinese Financial System becomes the standard. In more countries. Then it would be very difficult. F not impossible youre right to have oversight around the world. That is something i worry about. I appreciate you addressing the issue head on. I will stop there. I want to yield my time back and say im glad you are a capitalist. Thank you for being here. Thank you for being here. I want to take a slightly offtopic today because i sit on the intelligence committee. In order to attack our democracy. Those played on the painful and explosive divisions in society, race, gender, and religion. I will never forget a post in spanish that urged people to vote on the cell phone. I wonder who did. On freedom of expression, i celebrate your commitment to freedom of expression. It also came across as onesided. The importance of black lives matter having a voice. It didnt say anything about Indian Muslims killed because someone used a Facebook Post to organize a mob because the authorities used to organize a mob, my point is what your georgetown speech missed is that all of our rights, freedom of expression is really hard, if it means anything. It means the government will defend the rights of nazis to march through a jewishness that jewish neighborhood. It will defend the right of an american to burn the american flag. With all the anger and emotions that would generate. Just naively say that freedom of expression was a good thing. We invested in those things that will make us worthy to live in the context of freedom of expression. We establish regulation through a democratic and transparent process. He spent a lot of resources to regulate commercial speech and we invest in trillions over the educate americans so when they see something they hate, instead of picking up a gun or knife, they formulate a rebuttal. The town i live in invest half in education. Facebook, and im a customer, today is more like a country in a company. Than like you have global reach. Apparently half of americans get their news from facebook. My question is simple. Inen the investment we made establishing the context for freedom of expression, what commitment will you make, what investment will facebook make . You have almost 50 billion in cash on the books. Investment you are making so this freedom of expression you enabled is a good thing rather than a bad thing, thehe good side overwhelms Indian Muslims and all that can be bad coming out of freedom of expression. Thank you for the opportunity to address this. I talked about a number of risk and i think you are right. When you serve billions of people, even if only one small percentage of them use our services to do harm, i can still be a lot of harm. We have a responsibility to make sure we addressed all of the new threats from the internet as well as existing threats that have been there all along. This is something that, in terms of resources and what were 2016, we built much more sophisticated ai systems to proactively identify harmful content. Content weterrorist identify and remove before anyone sees it, that is what we want to do for all categories of harmful content. Let me stop you there because i get that and that is important. ,hat im really looking for with half a chilean dollars and i amillion in pass helpng for a commitment to make the society worthy of free expression. It is two things in practically eliminating harm, and we will be investing a lot with highrtnerships quality journalists and publications to foster that kind of content. As i mentioned earlier, we dont have more than 35,000 people at the company who work on safety and securitywe spend billions oa year on it, its a significant portion of our budget and expenses. On safetyore money and security in a year then the whole revenue of our company and went public earlier this decade. A lot of the things that we are doing now simply would not have been possible seven years ago. Are a big company, i feel like we have a responsibility to do this. I think you have a responsibility to do more than police. I think you have a responsibility to invest. The gentleman from arkansas is recognized for five minutes. Thank you, chair. Mr. Zuckerberg, glad to have you in the House Financial Services committee. A former startup investor and banker, i congratulate you, as so many of my colleagues have, on an extraordinary entrepreneurial success in creating facebook. I do also admire people in our capitalist system that are disruptors, that find a gap, weakness, and try to exploit it with a new product that is better for consumers. If we had not done that in the last 50 years in finance, we will not have atms, credit cards, debit cards, free checking or securitization, 401 k plans, or mobile apps. Course, this keen is committee is keen to embrace innovation. Down on the fintech task force, and others, this is supported and its important that we support innovation on this committee. I dont want to punish the Libra Association for a product that does not exist yet, but i was reading the g7 report that mr. Marcus participated in. That report says the g7 believes no global stable corn project should begin operations until the legislative regulatory and oversight challenges and risks outlined are adequately addressed through appropriate designs, adhering to regulations that are clear and proportionate to those risks. Is that a statement you agree with . Congressman, i have not reviewed the report in detail. In general, we understand that working in Financial Services and payments this is an area that is very sensitive. Peopless money is obviously extremely important to them. There are good regulations in place to make sure all services are basically protecting people. I want to make sure that we do the same and that we are at the same standard or higher in every thing we do. I appreciate that the writ i think you have made it clear that libra will not go forward in the world in any country unless it meets an adequate standard here in the United States. Saying is this g7 announcement last week, i would say, mirrors that. Lets talk about privacy for a minute. There was a great book called life after google. In there that im prayer phrasing, private keys are held by human beings, not by government, not by google. I would add their pedigree not by facebook. You support the idea that in a digital world, we each control our data and we exchange in only one relevant at the time necessary to conduct a particular transaction . Is that a world that you acknowledge as the future . I think it may be a little more nuanced. I certainly think there should be private tools that people can use to Exchange Messages and information privately. That is why whatsapp is encrypted, moving our tools to be encrypted. Contentame time, as gets to be more broader and publicly visible, there, the equities, the values and the balance shift toward upholding Public Safety in addition to privacy. Is sharing something very broadly, we need to make sure it is not broadly inciting violence. I understand that. Im talking about peoples privacy data. It is theirs to share as they deem fit under some authentication. Let me move on. Lets talk about Digital Currency. Dr. Foster and i also sent a letter to the Federal Reserve about the idea of a digital dollar. My interest and that was raised by mr. Marcus and his testimony. Wouldnt it be easier if there was a digital token that was a u. S. Dollar for that to simply be the digital coat token you are looking for . As noted here, that you dont go and try to create something separate . So, my understanding would that made on the standard that you need . You want to create a different rail for payments. Wouldnt that be successful in doing that . My understanding is that community is fairly split at this point. From a u. S. Regulatory perspective, it would probably be significantly simpler. But because we are trying to build something that can be a global Payment System that works in other places, it may be a less welcome in other places, it is only 100 based on the dollar. The gentleman from illinois. We have been listening to Mark Zuckerberg, ceo of facebook, testifying at great length before the House Financial Services committee, trying to figure out what is this cryptocurrency call the libra. Security . Rrency, Mark Zuckerberg has committed that they will not go forward unless they get regulatory approval, a major concession to the house. Lets go back to the hearing. What provides transparency to consumers and regulators about what data is being collected and also how its being monetized. It also provides limited rights of deletion. I was wondering if you would comment for the record on what you think is the technical feasibility of that, as well as any policy concerns you might have. Could you clarify what part the feasibility of the data specification, data collection, delivery to consumers. There are lots of details that have to be filled out a project like this. How would a consumer authenticate himself to make sure that he is looking at his data and so on . Also if you have the right to delete, you also have the right to authenticate yourself appropriately. Have your staff have a look at that, and if you could get back to us for the record, if you see any technical problems in the implementation of it. You have been asked i dont think we received a clear answer whether or not libra will allow anonymous, untraceable transactions. Can we have a clear statement on the . Possible to conduct anonymous transactions using libra . Calibra libra. Anonymous, untraceable transactions. Then there is a host of problems. Will libra allow anonymous transactions . Its an open question but you publish your code. It seems to me, looking at the discretion of the code, if you ,ave the Public Private key you have control over that libra balance. That makes it pretty hard, equivalent to sell custody. If you allow sole custody, it is hard to stop anonymous trading. Have i missed something . I think this is probably more of a policy issue as your code exists, can you transact anonymously with libra . Congressman, it certainly would be possible to build a system that would allow that. If there is a policy question about what the restrictions are many to be placed on that. There are equities on both sides. If the goal is to enable inclusion, especially in countries i understand the arguments but as it currently exists, it seems to me, anonymous transactions are allowed. If there is something wrong with that, i understand you can change the way it operates. Currently exists, i believe its not possible. If im wrong, please get back to us on the record. The second thing that you have to come up with an answer to is under what conditions is fraudulent or mistaken transactions can be reversed . You mention in your testimony that calibra intends to refund unauthorized transactions. What are the limits to that . For example, if there is a milliondollar ransomware payment that is made through. Alibra i dont know if we have worked out those policies yet but our intent in principle is to be at the level of or exceeding the level that people expect from other payment instruments, whether credit ,ards or other things like that in terms of Fraud Protection and consumer protection. But you have to charge a something if you are depending on what class of fraud you are insuring against. You have to charge or it will not be a profitable product. You have not thought about the details nothing that you can give us on what your current plans are for when you can reverse fraudulent or mistaken transactions . Not sayingman, im we have not thought about it but we have not nailed down the policy yet. These specific product policies in calibra i think are downstream to working out an architecture for the overall project. From the very start, you have to understand is there a mechanism to reverse transactions . All of these bitcoin billionaires go run with big security details because if somebody puts a gun to their head and says give me a bitcoin, it is not a reversible transaction. I dont think people want to live in that situation. So trying to understand who will guarantee reversing a fraudulent transaction. Facebook is committed to reimbursing people and figuring out the right policy on that. That may be restrictions youre asking, we have not nailed down all of those policies exactly, but the goal is like when youre using a credit card, you expect the company to pay and there are welldefined legal limits on that. That is why the credit card agreements are so long and no one reads them. Thank you. My time has expired. The gentleman from georgia is recognized for five minutes. You, madam chair, mr. Zuckerberg, for being here. Last evening, i was reading the Washington Post website because they had leaked some information that was interesting. Right below the headline was a caption that said democracy dies in darkness. Thank you for holding this hearing today in this room, in the light of public, not in the basement of the capitol complex behind locked doors. Other hearings are being held today and i thank you for that. Its important the American People see what we are doing in congress. You faced a lot of criticism today, and a lot of what you are doing. I was in the Information Technology sector for 30 years. When people shake up the status quo, they get criticized. Even some of your harshest critics here today, i would venture to say, if they have not, they will post the comments and even the video of their questioning on facebook which is a testimony to the impact of your vision, innovation has had not only on American Culture but on business, technology. It does not come easy. Much of the criticism i have seen in my 10 year i love innovation, i love finding the place where technology can fit. You share that as well. I remember when bill gates was attacked because he challenged linux. I hope that you take this in a coffin entry way that i mean it. But there is another gentleman in this town that you and he share a lot together, president trump. You are both successful businessman, capitalist, billionaires you have done well, but when you share in common is that you both challenge the status quo. He calls a draining the swamp, you see it as innovation. Intolerant to shaking up the status quo. Eurocrats, politicians learn to manipulate the system to their advantage. When you bring in new ideas, it is hard for them to understand. Some of the question today have been indicative of, everybody wants to put what you are doing in a box. When you think outside the box, there is no box to put it in. I think we should advance, seek innovation. I am not opposed to some of the things that you are tried to do. About thely concerned implications they may have, the operation of it, but we need to do given due consideration. Evolvedions really around how this thing will operate, how you see it operating. I dont see it sitting in a box. The Federal Reserve chairman told our committees, if libra causes protection, they would rise to systemically important levels due to the size of the facebook network. David marcus said if libra is not done right, it could present systemic risk. Do you believe libra is systemically important, especially because you are calling it a Payment System, which is really done by Central Banks . Do you compare what you are doing with libra to Central Banks, should you be regulated as such . Congressman, the distinction between what is systemically important, my understanding is a big part of that is scale. , just becauseting facebook serves a lot of people around the world doesnt mean that if we rolled out a product that on day one all of those people would be using it. Like any of the things that we do, we probably have to experiment, make the product work overtime, and that would be risky. There is a long public printer movie are discussing it before getting any approval. I also think there is a risk that we ship something and it takes time to make it work. Time, plan works, over certainly it could rise to the level that someone might determine is systemically important. I will defer to the regulators judgment on when that is, but i dont think its automatically the case that if something theches, a small subset of people that use armed services, that it has to be that on day one. If it does get through that, it would be systemically important, based on your statements that you will work with regulators, are you prepared to meet the requirements and regulations that come with the systemically important Financial Service congressman, we would be. That is where we are working on this project. That, in addition to the other ideas for Digital Currencies and cryptocurrencies out there, having a Payment System that is based on some of those technologies but is regulated at the highest levels and upholds the highest standards on all the areas around safety and security, whether Financial Stability or fighting terrorism, crime, fighting fraud, we think that can exist with a Digital Currency, too. That is what we are trying to create here. I have several other questions that i will submit to the record. I yield back. Thank you for being here. , the gentlewoman from ohio also the chair for the subcommittee on diversity and inclusion, is recognized for five minutes. Thank you. Mr. Zuckerberg, i want to get through a number of questions, diverse asset management, fair housing issues, Diversity Inclusion in privacy and security. Diversity inclusion is important to me and personal to me. I have been here before with facebook about the lack of diversity and inclusion. I have discussed this repeatedly with your company over the past years. Im the vice chair of the congressional black caucus, and they have said multiple meetings with your company, and here we are again. Let me get into asset management. Certainly, a large industry. Something like a 70 chilean dollar industry. Than 46has more million on record in cash or cash equivalent and marketable securities. Are any of these funds managed by diverse own companies . Yes or no . Congresswoman yes or no . I take that as a no. You have law firms that work on your legal cases around the country. How many david we have been listening to ceo Mark Zuckerberg from facebook testifying at length on capitol hill. That will continue. In the meantime, we want to check in with Kevin Cirilli on capitol hill. Kevin i thought there were a couple of takeaways that had emerged following this hearing, and the first of which is that Mark Zuckerberg is making the case that Facebooks Libra could underserved communities in the banking sector, whether Rural Communities or more urban. That has been greeted with deep skepticism by lawmakers in both parties. It is a tactic that the financial industry has utilized over the past decade on a host of more in the weeds issues as it relates to Financial Services regulation. That said, never have we seen such i hope our file highprofile figure embrace that strategy. Even Mark Zuckerberg conceded the point that he feels he is a flawed messenger to be trying to move this issue along. So there is that issue on the political front. When you look at the geopolitical front, the issue of china has come up again. Making the case that it facebook, u. S. Businesses dont act, china has already acted, and that the u. S. Would be ceding ground internationally to other countries in terms of innovation and Agile Services innovation. Last week and this is something that ought to be continuously recognized. The House Financial ServicesCommittee Chairwoman as well as her allies on the panel, many members of the democratic caucus, have consistently raise the issues relating to diversity, election interference, and the notion from the republican standpoint of freedom of speech. It comes at a time when antitrust concerns have been raised, other concerns, but zuckerberg still plowing ahead. David we have to remember this is the House Financial Services committee. The question here is regulation. Mark zuckerberg said we are not applying for a banking license. Time, they took the argument, we are trying to help people who are under banked. They came back and said how many in facebook are in that category . What have you done otherwise to help the less privileged among us . He didnt have a lot of answers on that. It is a data company and he doesnt have the data. Talking to folks that are supporters of libra and those that are critical, one of the key issues they raise is precisely that. On the one hand, Mark Zuckerberg is saying he will not move ahead with a platform until he gets the full backing of the u. S. Regulatory front. On the other hand, he is also saying it would help underserved immunity is domestically but he doesnt have the data yet to support it. When i talk to lawmakers in those communities, they said they had been briefed by folks more supportive of this that are making the case, as it relates to agriculture and how remittances are paid for immigrants, as well as other sectors in urban communities, access to Financial Services such as Financial Information or advice, that this is the type of technology that would help to move them along. Frankly, big banks dont see the financial incentive to provide those services to these communities. Mark zuckerberg sees the political opportunity to build that support. David stay with us. We want to bring in sarah frier, who covers facebook for bloomberg. I was interested in bill foster, the representative from illinois , who said he is the only ai programmer up their. Specific questions about whether you could transact anonymously, reverse transactions. Mark zuckerberg didnt have answers. Is that because they did not develop as yet . Sarah everything here is hypothetical. Those questions are simple. Can you get a refund . Can you get money from someone if you dont know who they are . Code, which he says he has looked at, it seems possible. There could be some issues. But zuckerberg is not ready to answer those questions. He is not really ready to talk about much of the specifics at all because he does not want to say anything that would endanger the project. It is so hypothetical and it really speaks to the fact that this hearing is not about libra really, its about bringing zuckerberg in, having an excuse to get him on the hill and question him. Other issue that Mark Zuckerberg has emphasized, china. The reason we have to do this, if not, china will get there and we will be at a disadvantage. Is that right . Toah is it zuckerbergs job dictate american policy . He is trying to Tell Congress that facebook should be your strategy for these international, competitive problems. Do their ownu. S. Cryptocurrency with the u. S. Dollar in competition with facebook . There are certainly other ways about competing with china. I think he is really tried to big policyumps decisions on china recently and fit into that narrative. It is looking a little awkward. Cirilli, we continue to have testimony from Mark Zuckerberg, looks like it will go on for some time, but this will end at some point. What is the next . If you are on this committee, what do you do next . Mark zuckerberg says he wants to comply with regulations, what are the regulations he is complying with . Kevin we anticipate this will go into the early evening hours, so Mark Zuckerberg has a lot more time on his hands before this house congressional committee. In terms of what comes next from the regulatory angle, thats an interesting question. Frankly, there is a turf war here in washington, d. C. About which regulatory agency, which senate panel, house panel will have jurisdiction over these types of matters. Watersne that chairwoman feels, given this is a Digital Currency, the House Financial Services committee has the oversight to conduct these matters. [no audio]procedure digital reform act come through congress between now and at least the next november, the election. That said, there is a lot more appetite and a lot more attention being focused on Election Security issues. David many thanks to Kevin Cirilli and sarah frier. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Scarlet im scarlet fu. This is bloomberg etf iq where we focus on the risks and rewards offered by Exchange Traded funds. Skin in the game. 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