David Marcus Says Calibra Is Considering Audits to Prove Data Protections

David Marcus Says Calibra Is Considering Audits to Prove Data Protections

David Marcus said that Facebook and Calibra have built strong protections from one another in regard to personal data sharing, and is seeking an auditor to prove it

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Calibra cryptocurrency wallet CEO David Marcus spoke at the New York Times Dealbook Conference in New York City where he discussed the worldwide regulatory scrutiny the stablecoin project continues to face, among other topics.

Calibra is considering an auditor for personal data practices 

On Nov. 6, the co-creator of Facebook’s Libra coin had a sit-down interview with Andrew Ross Sorkin of the New York Times and CNBC. 

In response to an audience member’s question about personal data privacy and protection, Marcus said that Facebook and its Calibra wallet would not intermingle personal data from the social platform and financial data from the cryptocurrency wallet. He said: 

“We have built very strong firewalls between Calibra and Facebook in such a way that if you’re on the Facebook side, no one can have access to that data.” 

Marcus added that Calibra was investigating whether the separations between itself and Facebook could be audited “so that we can actually ensure that there’s third parties monitoring that.”

Regulators worldwide have expressed concern over how safe customer data would be when using Facebook’s proposed Libra stablecoin, for which Calibra would serve as a wallet. Data protection watchdogs in the United Kingdom and Switzerland, as well as United States representatives, have all sought information from Facebook in this regard.

Understanding Libra is “not trivial”

Marcus initiated the talk by saying that he expected the global regulatory scrutiny “almost as it actually happened.”

Marcus explained that he knew there would be a strong pushback by regulators, as understanding Libra’s design is “not trivial.” He said that it requires a significant investment of time to understand the separation of the Libra Association, the Calibra wallet and Facebook.

Marcus stated that Libra is designed to operate as a payment system to enable people to access modern financial services and digital money across the globe, “not as a thing to take over the world and to control all.”

Bitcoin is not a currency

Marcus also stated during the interview that Bitcoin (BTC) is like digital gold, and that he does not think of BTC as a currency. He said:

“I don’t think of Bitcoin as it’s actually not a great medium of exchange because of its volatility.” […] I see it as digital gold.”

Marcus added that people can hold on to BTC as an investment just as with actual gold, but that Bitcoin’s volatility makes it impossible to be used as a means of payment by those who cannot afford a 10 or 20 percent drop in a day.  

The main reason that Bitcoin has not been regulated out of existence, according to Marcus, is because regulators do not perceive Bitcoin to be a medium of exchange, and therefore a threat to their monopoly on monetary policy.

Additional reporting by Aaron Wood


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David Marcus said that Facebook and Calibra have built strong protections from one another in regard to personal data sharing, and is seeking an auditor to prove it

Report: Facebook Could Use Fiat-Pegged Stablecoins for Libra

Report: Facebook Could Use Fiat-Pegged Stablecoins for Libra

Calibra CEO David Marcus reportedly said that Libra would be open to using national fiat-pegged stablecoins at a banking seminar on Sunday

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Facebook is reportedly open to the idea of using national currency-pegged stablecoins for its forthcoming Libra project.

According to Reuters on Oct. 20, David Marcus, the head of the Libra project for Facebook and CEO of Facebook’s wallet service Calibra, said that Libra could use various fiat-based stablecoins, instead of the initially proposed token. 

Speaking at a banking seminar on Sunday, Marcus reportedly stated that the main goal of the project was to create a more efficient payment system and that it was not opposed to looking at alternative approaches. Marcus said:

“We could do it differently,” he said. “Instead of having a synthetic unit … we could have a series of stablecoins, a dollar stablecoin, a euro stablecoin, a sterling pound stable coin, etc […] We could definitely approach this with having a multitude of stablecoins that represent national currencies in a tokenized digital form […] That is one of the options that should be considered.”

The originally proposed backing for the Libra token was a basket of various national currencies including the U.S. dollar, euro, Japanese yen, British pound and Singapore dollar.

The project needs agility amid a hostile regulatory environment 

Marcus reportedly noted that the aforementioned stablecoins were not the Libra Association’s preferred option for the project, but said that it must remain agile.

The association — the project’s governing body — has lost several key members in recent weeks, including such major payment and e-commerce firms as PayPal, Visa, eBay, Mastercard and Stripe. 

According to United States Treasury Secretary Steven Mnuchin, the firms left the Libra Association because the project was “not up to par” with American Anti-Money Laundering standards.

Indeed, Libra is continuing to face pressure from global regulators, who are voicing increased skepticism over the project and its possible effect on global financial stability. 

Financial ministers and central bank heads from the G20 countries have recently raised concerns that global stablecoins could negatively affect the sovereignty of monetary policy, particularly in developing nations. On Oct. 18, German Federal Minister of Finance Olaf Scholz said that global regulators should prevent Libra’s issuance outright.

Facebook CEO Mark Zuckerberg will testify about the project before the U.S. House of Representatives Financial Services Committee on Oct. 23.


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Calibra CEO David Marcus reportedly said that Libra would be open to using national fiat-pegged stablecoins at a banking seminar on Sunday

Facebook’s David Marcus Advocates for Blockchain-Based Payment Networks

Facebook’s David Marcus Advocates for Blockchain-Based Payment Networks

David Marcus has set forth arguments in favor of blockchain-based payment networks

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David Marcus, the head of Calibra at Facebook, has set forth arguments in favor of blockchain-based payment networks.

In a Sept. 25 blog post, Marcus pointed out shortcomings of existing payment systems such as regional and international networks, including SWIFT and RT1, central banks and others. Marcus began by noting the weakness of the underlying infrastructure of the current system that limits its efficiency and reach.

In one case, Marcus wrote, an individual can send and receive funds from within one wallet, while not being able to do the same between wallets from different companies. He went on to explain:

“Depending on the setup, moving money from point A to point B requires a number of intermediaries to be involved, and often demands liquidity pools to be readily available at point B for consumers to get their money out in a timely fashion.”

Advantages of blockchain payment networks

When it comes to a blockchain-based payment network like Facebook’s forthcoming Libra, its participants can purportedly carry out near real-time cross-border transfers at a low cost and with no need of liquidity pools of various currencies, Marcus said, adding:

“This would in turn massively reduce costs by eliminating the need for so many intermediaries, and operational complexity and overhead, thus increasing innovation and access. People would benefit from more ease when they want to send and receive money, and the barrier of access to modern digital money and financial services would be greatly lowered.”

Other blockchain-based payment solutions

An array of leading financial companies are also working on solutions that could replace traditional payment methods with blockchain-based systems. Earlier in September, Mastercard partnered with blockchain firm R3 to develop a cross-border payment solution.

American financial services company Wells Fargo & Company also revealed plans to launch a pilot of a distributed ledger technology-based platform designed to perform internal book transfers of international payments within its global network using digitized cash.


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David Marcus has set forth arguments in favor of blockchain-based payment networks

Calibra CEO Delivers Opening Statements on Libra Ahead of Senate Hearing

Calibra CEO Delivers Opening Statements on Libra Ahead of Senate Hearing

David Marcus, CEO of Calibra, delivered opening statements to the Senate today regarding Facebook’s planned Libra stablecoin

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The United States Senate Banking Committee has released the opening statements of David Marcus, head of Facebook’s crypto wallet Calibra. Marcus made his comments to lawmakers today, July 15, ahead of a hearing on the Libra cryptocurrency project tomorrow in the Senate.

In his testimony, Marcus raised the issue of Facebook’s upcoming stablecoin Libra and its associated digital wallet Calibra, which have previously drawn criticism from both community members, lawmakers and leading industry players. Specifically, Marcus delivered comments on the structure and management of Libra and Calibra and their implications for commerce and consumers.

Marcus said that no sole organization should be responsible for the Libra Blockchain and the Libra Reserve; instead, there should be a cooperative approach. Thus, Facebook is ostensibly working on the creation of the Libra Association, which is an independent membership-based organization. Once Libra is launched, Facebook’s role in governing the association will ostensibly be equal to that of other members. 

According to Marcus, Facebook will not launch Libra until the company satisfies all matters related to the stablecoin’s regulation and receives appropriate approvals. Marcus continued:

“State financial regulators will regulate Calibra as a money transmitter, and the Federal Trade Commission and the Consumer Financial Protection Bureau will monitor for consumer protection and data privacy and security issues. Calibra has filed for state money transmitter licenses in the U.S. and it is also registered with FinCEN as a money services business.”

Marcus further stated that Libra is a payment tool, and not an investment, which means that users will not be able to buy or hold it like a stock to subsequently gain interest on it. Per Marcus, Libra also differs from other currency-backed stablecoins as it will not have its value fixed to any single asset, specifying:

“Libra will be fully backed on a one-to-one basis through the Libra Reserve, which will hold a basket of currencies in safe assets such as cash bank deposits and highly liquid, short-term government securities. These currencies will include the U.S. dollar, the British pound, the euro, and the Japanese yen.”

Yesterday, a drafted bill entitled “Keep Big Tech out of Finance” surfaced online, allegedly originating from within the U.S. House of Representatives Financial Services Committee. The bill read, “A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System.”


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David Marcus, CEO of Calibra, delivered opening statements to the Senate today regarding Facebook’s planned Libra stablecoin

Facebook’s David Marcus Assures Congress That Libra Will Cooperate

Facebook’s David Marcus Assures Congress That Libra Will Cooperate

Facebook’s David Marcus has written a letter to Maxine Waters and other members of the House Financial Services Committee to address concerns surrounding Libra

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David Marcus, the head of Calibra at Facebook, has written a letter to Chairwoman Maxine Waters and members of the House Financial Services Committee in preparation for the upcoming Libra hearings, according to a report by The Hill on July 9. 

According to the report, Marcus wrote, „I want to give you my personal assurance that we are committed to taking the time to do this right.”

In addition to being the head of the Calibra wallet, LinkedIn lists David Marcus as the co-creator of Libra.

Marcus’ letter is only the latest in a lengthy rally between Congress and Facebook since the latter published the white paper for its upcoming Libra currency. This back-and-forth began in the middle of June, when Waters wrote a statement expressing her concerns and desire for Facebook to cease work on Libra, saying:

“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action.”

Waters and the House of Representatives Committee on Financial Services also requested that Facebook and its partners impose an official moratorium on Libra development. 

On July 2, a collection of advocacy groups submitted a letter with their own questions, as well as a request for a moratorium on development of Libra.

Marcus posted on Facebook on July 3 to address these concerns and to stress that Facebook would have a limited role in governing the stablecoin-like cryptocurrency Libra among the anticipated hundred-plus members of the planned Libra Association. 

As previously reported by Cointelegraph, the House Financial Services Committee will hear Facebook’s testimony regarding Libra on July 17. David Marcus is rumored to testify at this hearing, as well as at the Senate Banking Committee hearing on July 16.


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Facebook’s David Marcus has written a letter to Maxine Waters and other members of the House Financial Services Committee to address concerns surrounding Libra

Facebook’s David Marcus Addresses Libra Trust Issues

Facebook’s David Marcus Addresses Libra Trust Issues

Facebook’s David Marcus addressed trust concerns surrounding the Libra cryptocurrency in a recent post

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David Marcus, the head of Calibra at Facebook, emphasized that Libra users will not have to put their trust in Facebook, in a post on July 3.

Marcus reiterated that Facebook is not the only member of the Libra Network, and that they are relinquishing control of the network. In the post, he says:

“Facebook will not control the network, the currency, or the reserve backing it. Facebook will only be one among over a hundred members of the Libra Association by launch. We will not have any special rights or privileges.”

Relinquishing control over the infrastructure behind Libra is precisely what Polychain CEO Carlson-Wee said would be the best strategy for Facebook. At the Consensus 2019 blockchain conference in May, Carlson-Wee said:

“I think that the strategic move for Facebook would actually be to build public infrastructure. And that public infrastructure could be incorporated onto all the Facebook platforms, which of course are proprietary. But that public infrastructure, if they don’t try to own it, I think that’s where they will have the most success.”

Marcus also said that, while Facebook does own the crypto wallet company Calibra as a subsidiary, no financial data will be available to Facebook. Moreover, he says that users are free to use a range of custodial and non-custodial wallets from different companies to store and make transactions with Libra.

One non-custodial wallet recently announced is ZenGo, which has provided a proof-of-concept demonstration for Libra support. This wallet reportedly eliminates the need for storing private keys by using a key-like solution that is distributed among multiple parties, rather than existing as one string of characters.

Marcus says that ultimately, users do not have to put their trust in Facebook just to use Libra:

“Bottom line: You won’t have to trust Facebook to get the benefit of Libra. And Facebook won’t have any special responsibility over the Libra Network…. We’ve been clear about our approach to financial data separation and we will live up to our commitments and work hard to deliver real utility.”

The announcement comes just one day after members of the United States Congress requested that Facebook impose a moratorium on Libra’s development until it can be further examined.

Hearings in the Senate and House of Representatives — at which Marcus will ostensibly appear — are scheduled for July 16 and July 17, respectively.


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Facebook’s David Marcus addressed trust concerns surrounding the Libra cryptocurrency in a recent post