Guam’s congressman made news of a different sort during a House Finance Committee hearing this week when he grilled Facebook chairman Mark Zuckerberg about the social media company’s proposed crypto-currency LIBRA.
San Nicolas challenged Zuckerberg on the reliability of LIBRA.
Because currencies fluctuate in value, he said it would be virtually impossible for someone to put a dollar in, and have someone else get a dollar out.
“At the end of the day who is going to be responsible of LIBRA fails?” San Nicolas asked.
Zuckerberg answered: “Congressman I think the point of the one-to-one reserve backing is to prevent the kind of leverage that you see in the traditional banking industry.”
“But it just wouldn’t be possible when using a basket of currencies. The main question I really want to have answered is if LIBRA fails who’s going to be responsible for that?” San Nicolas asked.
Zuckerberg answered: “Congressman the LIBRA Association will have reserve but I understand that this is an important question and this is one of the things that we’ll be working with SOCK and other regulators to make sure that we have a solution.”
The exchange was reported by London’s Financial Times and other international media.