The US Needs Libra to Counter China’s Cryptocurrency

Facebook CEO Mark Zuckerberg will try to convince US lawmakers to back the company’s Libra project by pointing to threat of China developing its own cryptocurrency to influence the world’s financial markets.

On Wednesday, Zuckerberg is slated to appear before the House Financial Services Committee to discuss the company’s Libra project, which is facing scrutiny from governments across the globe. A key concern is whether the proposed crytocurrency risks handing too much power to Facebook when its reputation has taken a dive on the company’s privacy scandals and its struggles to fight misinformation.

A day before the hearing, Zuckerberg released his prepared remarks, which say Facebook will only move forward on the Libra project until it secures approval from US regulators. The goal with the cryptocurrency is to simply provide internet users —particularly those without access to banks— an alternative way to send money that’ll be as easy as sending a text over a smartphone,…