Facebook's Zuckerberg open to scaling back Libra plan

Facebook chief executive Mark Zuckerberg opened the door Wednesday to scaling back plans for its digital coin Libra if it cannot win approval as a new currency for global exchanges.

Zuckerberg made the comments as he faced a torrent of criticism at a congressional hearing over the planned cryptocurrency it is seeking to roll out next year.

"We clearly have not locked down exactly how this is going to work yet," Zuckerberg told a hearing of the House Financial Service Committee.

"The goal of Libra is to build a global payment system rather than a currency."
"There is already some discussion about whether it might make sense to build the kind of digital payment system ... based on individual sovereign currencies rather than a combination of these currencies into some new one."
Asked about whether the digital coin could simply be linked to the US dollar, Zuckerberg said "the community is fairly split on this point."
He said that it could be far simpler from a regulatory perspective but that "it may be less welcome in other places if it's only 100 percent based on the dollar."
"I have my qualms about Facebook and Libra ... but if history has taught us anything it's better to be on the side of American innovation."
During questioning, Zuckerberg noted that a major competitive threat is coming from a Chinese public-private partnership and that "they are very focused on building this and exporting it around the world."
The Libra plan has been criticized by regulators and officials on both sides of the Atlantic, and the G7 said last week it should not launch "until the legal, regulatory and oversight challenges and risks are adequately addressed."