In his prepared remarks, the Facebook CEO will tell lawmakers that America risks losing “financial leadership” to China if they don’t get behind his company’s plan. Referring to China’s proposed digital currency, which is expected to launch before the end of the year, Zuckerberg will argue: “While we debate these issues, the rest of the world isn’t waiting. China is moving quickly to launch similar ideas in the coming months… If America doesn’t innovate, our financial leadership is not guaranteed.”
Zuckerberg is expected to face heavy pushback against his cryptocurrency plan in Congress today. Lawmakers have been hostile to the idea of a corporate-led currency since Facebook revealed the project earlier this year. Speaking about Libra on Laura Shin’s Unchained podcast this week, Congressman Patrick McHenry urged his colleagues not to think of Libra as a cryptocurrency at all. “Look, I think Libra has opened a lot of people’s eyes about the value of cryptocurrency. Libra is not cryptocurrency, however, and we need to stop lumping it together with very real, and very important projects like bitcoin.” He also said the best way to combat Chinese plans for a digital currency is with a digitized dollar, issued and controlled by the Federal Reserve. “When it comes to the question of a digitized US dollar, I think that is a reasonable next step for our central bank.”
The resounding takeaway from the speech will be: get behind Libra or face losing financial dominance to China. “Libra will be backed mostly by dollars and I believe it will extend America’s financial leadership as well as our democratic values and oversight around the world. If America doesn’t innovate, our financial leadership is not guaranteed.”
