What to Expect When Facebook's Zuckerberg Defends Libra on Capitol Hill

Once again, Facebook will face the fire on Capitol Hill on Wednesday, with the Libra cryptocurrency project taking center stage.

Mark Zuckerberg, the social media giant's founder and CEO, will testify before the House of Representatives Financial Services Committee, arguing that Libra will benefit unbanked individuals and that the U.S. should allow Libra to launch.

As with Libra's previous trip to the Hill, lawmakers are expected to focus more on Facebook the company than the cryptocurrency project it is leading.

Perianne Boring, president of the Chamber of Digital Commerce, told CoinDesk that Facebook was the "Predominant focus" during previous hearings around Libra, when Facebook's blockchain lead David Marcus testified before the House Financial Services and the Senate Banking Committees.

Still, Zuckerberg is expected to argue that Libra can help provide financial services to 1.7 billion unbanked individuals worldwide, allowing for fast and inexpensive international remittances.

Libra would be overseen by a governing council dubbed the Libra Association, as a way of ensuring that Facebook wasn't the only entity running the project.

The remaining 21 companies, which don't include Facebook itself, signed the charter last week, though the association plans to grow to 100 members before Libra itself launches.

Libra will have to assure not only U.S. legislators and regulators, but also international policymakers, after French and German ministers warned that they would seek to block the cryptocurrency from launching within their jurisdictions.

During the previous hearings, representatives asked Marcus a wide variety of questions, ranging from security features with Libra's underlying programming language to how Libra would differ from old company scrips.

Libra is intended to be a stablecoin, with its value underpinned by a basket of fiat currencies.