Update: Mark Zuckerberg is currently testifying before Congress. Watch the video above.
Mark Zuckerberg has returned to Washington for more questioning, where the CEO is expected to answer queries from the House Financial Services Committee.
The point of the meeting? Cryptocurrency.
What’s going on: Facebook has long-held plans to create its own cryptocurrency. Earlier this year, Facebook launched one, called libra, under the umbrella of the Libra Association, which will govern the cryptocurrency. Facebook said it won’t launch the cryptocurrency until it receives the thumbs up from lawmakers, according to CNBC.
But the Libra Association and Facebook’s ties to cryptocurrency haven’t been well received. Libra Association watched its partnerships drop, for example, as Visa, Mastercard, Paypal, eBay, Stripe, Booking and Mercado Page all left the association. Lawmakers have scoffed at the idea, too. Company executives have questioned the idea of libra, but Zuckerberg has always been a fan of digital currency and bitcoin.
This has left the Libra Association and the libra cryptocurrency “on life support,” according to The New York Times.
But Facebook doesn’t want to back down. The company has spent the past week lobbying for the cryptocurrency. Zuckerberg’s testimony in Congress is another way the company intends to push its idea through to regulators and get the approval it needs to live.
What to expect from Wednesday’s hearings: The 60 congressional members on the committee — including Utah Rep. Ben McAdams — will question Zuckerberg about Facebook’s new cryptocurrency. Congress will likely raise questions about how Facebook handles data, currency and its ad business, along with why it should handle people’s money.
Congress could also end up asking Zuckerberg about an abundance of issues, including the company’s privacy policies and its targeted ad business. Facebook’s ads have come under scrutiny since advertisers can discriminate with their ads.
“There’s going to be a wide-ranging number of issues. This is not only about Libra,” said David Marcus, the Facebook executive who has been at the head of the company’s cryptocurrency push, according to Bloomberg.
“It’s hard to predict how these things will go,” he said.
Ohio Rep. Warren Davidson said, “I’m sure a lot of people will dig in on privacy. You’ve got a huge wealth of data that they’ve harvested from their users’ activities. Do you now mingle that same database with financial transactions?”
How Congress feels: Facebook has tried to win the support of lawmakers, according to The New York Times. But members of the committee seem skeptical about the cryptocurrency.
For example, Texas Rep. Lance Gooden told The New York Times the company’s decision to base the Libra Association in Geneva instead of the United States is one reason why the company isn’t well-liked.
“There is an impression that perhaps Facebook wants a clean start somewhere else because they haven’t enjoyed criticism to their social media platform, but Democrats and Republicans agree that criticism of the social network is entirely justified,” he told the Times.
Gooden and California Rep. Maxine Waters went to Switzerland to discuss the project with local regulators, and it didn’t help their opinions, either.
“We left thinking, ‘what a shame that something that could perhaps be a great thing for the future of the world economy is not going to be based in the U.S.,’” Gooden told the Times.
What Zuckerberg will say: Zuckerberg’s prepared remarks for the hearing have already surfaced online, according to CNBC. Zuckerberg intends to tell Congress that the libra cryptocurrency “will extend America’s financial leadership as well as our democratic values and oversight around the world.”
Zuckerberg is expected to hold his position that libra won’t launch without federal regulation.
“Even though the Libra Association is independent and we don’t control it, I want to be clear: Facebook will not be part of launching the libra payments system anywhere in the world until U.S. regulators approve,” Zuckerberg said.
He suggested in his prepared remarks that questions about the libra cryptocurrency should be answered by the Libra Association — not Facebook. He said that Facebook is not the “ideal messenger” for the project either, per Reuters.
Does it really matter?: Zuckerberg will make headlines for appearing in Congress. Normally, he would have other Facebook employees speak to the businesses side of the operation. But he has been making the rounds in Washington this week, speaking on national news shows and at Georgetown University.
“Zuckerberg’s appearance will likely generate more interest and headlines than usual, but it’s possible there won’t be much more to learn,” according to Bloomberg.
“The timing of the hearing may mean the public hears even less from Zuckerberg than politicians had hoped for,” Bloomberg reported.
When does it start?: The hearing begins at 10 a.m. ET (8 a.m. MT). Congress will be allowed five minutes to speak or ask questions. The meeting could last for five hours or more.