Facebook CEO Mark Zuckerberg testified before the House Financial Services Committee on Wednesday in defense of a proposed digital currency called Libra that he would like regulators to sign off on.
It went about as well for Zuckerberg as can be expected, given many lawmakers extreme lack of trust in Facebook.
Chairwoman Maxine Waters (D-Calif.) established the mood of the hearing early on, detailing Facebooks many high-level failures, including how it enables discriminatory housing practices, stifles competition, has repeatedly failed to safeguard consumer privacy, permitted foreign governments to interfere in elections, and willfully allowed politicians to lie on the platform.
With all of these problems I have outlined, and given the companys size and reach, it should be clear why we have serious concerns about your plans to establish a global digital currency that would challenge the U.S. dollar, Waters told Zuckerberg.
In fact, you have opened up a serious discussion about whether Facebook should be broken up.
Zuckerberg countered by first acknowledging that Facebook has indeed made mistakes, and then warning that America risks falling behind if it doesnt move forward on digital currency adoption.
While we debate these issues, the rest of the world isnt waiting, Zuckerberg cautioned in his prepared remarks . If America doesnt innovate, our financial leadership is not guaranteed.
Actions matter more than words. Mr. Zuckerberg was unable to answer whether Facebook, if it is so interested in servicing the under-banked, works with any Minority Depository Institutions.
Facebook has a credibility problem, and not just on its supposed intent with Libra. pic.twitter.com/jwfKPDLIuT
Actions matter more than words. Mr. Zuckerberg was unable to answer whether Facebook, if it is so interested in servicing the under-banked, works with any Minority Depository Institutions.
Rep. Gregory Meeks (@RepGregoryMeeks) October 23, 2019
Facebook has a credibility problem, and not just on its supposed intent with Libra. pic.twitter.com/jwfKPDLIuT
Zuckerberg also pushed Libra as a means to promote financial inclusion and increase access to banking systems for historically underbanked populations, like minorities and women.
That claim didnt sit well with Rep. Gregory Meeks (D-N.Y.) who grilled the CEO for failing to support underbanked populations through more conventional and already existing systems like Minority Depository Institutions .
Words are different than actions, sir, Meeks said. If youre concerned about the underbanked and unbanked, how much of Facebooks money is in MDIs that would provide services and help the unbanked and underbanked? Have you invested in any of the MDIs in America or any place else in the world?
Zuckerberg conceded he wasnt sure.
The back and forth provided an opening for Rep. Brad Sherman (D-Calif.) to later accuse Facebook of wanting to build an encrypted financial instrument that will mainly be great for tax evaders, drug dealers and terrorists.
Mr. Meeks called your bluff on this idea that youre creating a payment system for the poor and unbanked, the congressman said. Youve done no effort to help the unbanked anywhere else, at any other time.
Sherman, who didnt ask a single question in his allotted time, closed with a shot at Zuckerberg, whom he accused of being dishonest about his true intentions.
Come for Rep. Sherman putting Zuckerberg on blast, stay for Zuckerbergs WTF look at the end pic.twitter.com/nbnyLsD3hm
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Committee","slug":"financial-services-committee","links":{"relativeLink":"topic/financial-services-committee","permalink":"https://action.news/topic/financial-services-committee","mobileWebLink":"https://action.news/topic/financial-services-committee"},"url":"https://action.news/topic/financial-services-committee"},{"name":"Digital currency","slug":"digital-currency","links":{"relativeLink":"topic/digital-currency","permalink":"https://action.news/topic/digital-currency","mobileWebLink":"https://action.news/topic/digital-currency"},"url":"https://action.news/topic/digital-currency"}],"isLiveblogLive":null,"isLiveblog":false,"cetUnit":"buzz_body","bodyAds":["\r\n\r\n","\r\n\r\n","\r\n\r\n"],"adCount":0},"isCollectionEmbed":false,"enhancements":{}}">Come for Rep. Sherman putting Zuckerberg on blast, stay for Zuckerbergs WTF look at the end pic.twitter.com/nbnyLsD3hm
Marcus Gilmer (@marcusgilmer) October 23, 2019
For the richest man in the world to come here and hide behind the poorest people in the world, and say thats who youre really trying to help ... Sherman said. Youre trying to help those for whom the dollar is not a good currency: drug dealers, terrorists, tax evaders.
Other representatives strayed from the topic at hand, pressing Zuckerberg on other critical issues like sex trafficking on the site , and backsliding on core civil rights issues like redlining which are exacerbated by advertising bias.
Rep. Alexandria Ocasio-Cortez (D-N.Y.) focused on Facebooks refusal to fact check lies made by politicians, asking Zuckerberg to clarify how the platform regulates political behavior, given that politicians are allowed to spread disinformation in their paid Facebook advertisements.
Zuckerberg affirmed that Facebook would remove any ad that deliberately advertises the wrong election date, as well as content that calls for violence, advocates physical harm, or would result in voter or census suppression.
But he drew a blank when Ocasio-Cortez asked if, hypothetically, it would be OK for her to run ads targeting Republicans by falsely claiming they voted for the Green New Deal.
\"So you WILL take down lies or you WON'T take down lies?\" @AOC runs Zuckerberg through a series of hypothetical ads she could run with lies in them, and he can't say if they'd stay up. pic.twitter.com/wlqqvZOvWy
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Committee","slug":"financial-services-committee","links":{"relativeLink":"topic/financial-services-committee","permalink":"https://action.news/topic/financial-services-committee","mobileWebLink":"https://action.news/topic/financial-services-committee"},"url":"https://action.news/topic/financial-services-committee"},{"name":"Digital currency","slug":"digital-currency","links":{"relativeLink":"topic/digital-currency","permalink":"https://action.news/topic/digital-currency","mobileWebLink":"https://action.news/topic/digital-currency"},"url":"https://action.news/topic/digital-currency"}],"isLiveblogLive":null,"isLiveblog":false,"cetUnit":"buzz_body","bodyAds":["\r\n\r\n","\r\n\r\n","\r\n\r\n"],"adCount":0},"isCollectionEmbed":false,"enhancements":{}}">"So you WILL take down lies or you WON'T take down lies?" @AOC runs Zuckerberg through a series of hypothetical ads she could run with lies in them, and he can't say if they'd stay up. pic.twitter.com/wlqqvZOvWy
Alexis Goldstein (@alexisgoldstein) October 23, 2019
Do you see a potential problem here with the complete lack of fact checking on political advertisements? she asked.
Well congresswoman, I think lying is bad, and I think if you were to run an ad that had a lie, that would bad, Zuckerberg replied.
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This story has been updated with Ocasio-Cortezs questions.
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