this predates calibra. we do this today on if someone wants to run political ads or run a large page. >> i do appreciate that. one of the concerns with facebook, and then perhaps financial participation with libra, calibra, that's going to be going in, you'd had major hacks, losing personal information for millions of users that have gone through. what appearances are actually going to be in place to make sure that the users with the most sensitive information that you can have in terms of finances are going to be protected, and then also, again, including bsa and anti-money laundering? >> thanks, congressman. the payment information that people share is stored separately from other information in our services. all of our information is stored secu securely. we work hard on security. this is especially secure. i don't think we've had an issue with this to date. we do -- even though we haven't launched calibra as a product yet, we take payments for a number of things, raising from fundraisers to people buyin

because libra is in the calibra, is that not right? >> sorry, i didn't understand. >> the libra, the currency, is in the wallet, calibra. >> yes, calibrac is -- >> me having my money in wells fargo bank. >> you could think about it that way. although we are not a bank. we are not applying for a bank charter. >> but that's the problem. mr. zuckerberg, that's the problem.m. that's what we're facing here and this was the same place i ran into kind of trying to understand what this - thing is are creating. and i appreciate creation. i would like to stay in america, not go to switzerland. but you are putting an association together, and as i been thinking about this the reminds me of two movies, doom and the president analyst. and it's what it's like but either one of them i'm happy to do it but the presidents analyst was everybody had information, or theo phone company had information on everybody and wanted to take over the world. we need to know what this is. we have to regulate this. at a not sure if you guys understand what it is. >> t

this predates calibra. we do this today on if someone wants to run political ads or run a large page. >> i do appreciate that. one of the concerns with facebook, and then perhaps financial participation with libra, calibra, that's going to be going in, you'd had major hacks, losing personal information for millions of users that have gone through. what appearances are actually going to be in place to make sure that the users with the most sensitive information that you can have in terms of finances are going to be protected, and then also, again, including bsa and anti-money laundering? >> thanks, congressman. the payment information that people share is stored separately from other information in our services. all of our information is stored secu securely. we work hard on security. this is especially secure. i don't think we've had an issue with this to date. we do -- even though we haven't launched calibra as a product yet, we take payments for a number of things, raising from fundraisers to people buyin

is it one and the same is calibra facebook? >> okay, congressman, there are two organizations here there's the independent libra association. >> that's what i'm wanting to get to know. >> which is a nonprofit, so it's not a for-profit entity. >> here's what i'm trying to get at how does the voting go is it what david marcus says, is it what facebook says or you can be overruled by others in the association? >> that's correct. right now there are 21 companies and nonprofits there are a lot more that want to join. each company and nonprofit organization that's a member has one vote in electing the board right now there are five board members. david marcus is one of the board members but is not running calibra. >> well, he's been here, in fact sat where you sat. >> sorry, i just misspoke. he's not running libra he is running calibra, which is facebook's payment subsidiary. but we are looking for -- the libra association is recruiting an independent director and david is not even on the search committee for that. >> okay. so here's

i want to talk about calibra because it does undermine other currencies. those that are sovereign countries have currencies 193 that you open yourselfov up to regulation. why not just take another currency quick says facebook you will make money through the transmission why do you thank you haveh to create? so i would ask you to go back to your folks and ask the pain you'rere going to have. why not just pick a currency and use that as part of the payment system? >> sure. the gold love libra is to have a globall payment system rather than a currency. because it's global in nature, nature, we figured it might be better not to solely rely on one country's currency. but because we are an american company and the american economy is the strongest in the world that make sense for any reserve to be primarily us dollars to extend america's financial leadership in that way. but we clearly have not locked down exactly how this will work for guy personally and much more focused on being able to help innovate and build a global payment system then i am of eddie specif

i want to talk about calibra a little bit. i am concerned about the establishment of a private industry used for transactions. i think it undermines other currencies in the world. to currencies are sovereign countries, two don't have currencies. 100 93 companies you are opening yourself up to regulation from. why not just pick another currency? facebook will make money through the transition of why did youis stop think you have to create a private currency? i would ask you to go back to your folks and think about whether the pain you will have is worth it. why not just pick a currency and use that? of zuckerberg: the goal libra is to build a global system rather than a currency. nature,it is global in we think it might be better to not solely rely on one -- one country's currency. because the american economy is the strongest of the world, it makes sense for any reserve to be primarily -- leadership in that way. but like you are saying, we have clearly not locked down how this will work yet. i am much more focused on being hel

calibra is the digital wallet where somebody puts their libra? >> yes. >> a wholly-owned subsidiary of facebook? >> that is correct and a for-profit entity. i'm curious how you are going to make your money, what the business model is. do you anticipate you will collect fees from vendors like a credit card processor or are you going to mine data and use that to monetize the data you get from people's purchases or all of the above. >> we are not going to share payment information from calibra to the rest of facebook for personalizing services, there are limited cases we might have to share data. >> how you make money. >> the basic method is advertising overall. the way this will work -- >> still use the data for advertising purposes. >> now. if you will give me a minute. >> i will reclaim my time. my time is halfway up. >> facebook released its plan to protect the 2020 elections. i assume you are familiar with this document. helping to protect the 2020 us elections. >> yes. >> and the plan doesn't mention this but does talk about misinformation. an

you mention in your testimony that calibra intends to refund unauthorized transactions. what are the limits to that? for example, if there is a million-dollar ransomware payment that is made through .alibra >> i don't know if we have worked out those policies yet but our intent in principle is to be at the level of or exceeding the level that people expect from other payment instruments, whether credit ,ards or other things like that in terms of fraud protection and consumer protection. >> but you have to charge a something if you are -- depending on what class of fraud you are insuring against. you have to charge or it will not be a profitable product. you have not thought about the details -- nothing that you can give us on what your current plans are for when you can reverse fraudulent or mistaken transactions? not sayingman, i'm we have not thought about it but we have not nailed down the policy yet. these specific product policies in calibra i think are downstream to working out an architecture for the overall project. >> from the very start, you have to understand

>> that's correct. >> calibra is the digital wallet. correct? >> yes, congresswoman. >> that's a whole subsidiary of facebook. >> that's correct. >> that's a for profit entity? >> that's correct. >> so i'm just kind of curious how you're going to make your money, what the business model is. do you anticipate you're going to collect fees from vendors, much like a credit card processer? or are you going to mine data and use that to monetize the data that you get from people's purchases? or all of the above? >> kacongresswoman, we're not going to share payment information from calibra to the rest of facebook for personalizing services. so thr just a small number of limited cases we might have to share data if for overall security or tax law requires it. >> so how are you going to make money? >> the basic method here is through advertising overall. and the way that this is going to work -- >> you'll still use the data for advertising purposes. >> no, sorry, if you'll give me a moment. >> i'm going to reclaim my time because it's about halfway up. a

that was david marcus from facebook's calibra. taylor, back to you.t was bloomberg's kurt wagner. still ahead, companies are promising more opportunities for women. we find out if they are keeping their word, next. this is bloomberg. ♪ taylor: a top priority for many businesses is bringing more women into positions of power in corporate america. now, two companies are teaming up to find out if companies are teamin keeping up with the diversity promises. joining me is lean in ceo rachel thomas and inclusion officer loreana yi. rachel, what were your key takeaways? rachel: for years, we have been talking about the glass ceiling, the invisible barrier, not imaginary. in reality, women get tripped up at the first step up to manager. for every 100 men hired or promoted to manager, only 72 women are. that means that the manager level, two thirds of the managers are men and women effectively cannot catch up. taylor: how has this changed from previous years? as you look at this study, does 2019 bring anything new when it comes to the managerial position? gues

taylor: there was david marcus, facebook head of caliber. -- head of calibra.ital currency revolution is in play this week as g7 release broad guidelines for regular in digital money. also up for discussion is whether central banks should be issuing their own. sweden and china are studying their topic and canada has launched a formal research project that has partnered with other monetary authorities. i got inside on wednesday from the president of peterson institute for international economics, adam posen. >> first, they have to regulate and keep away regulatory arbitrage that would exploit the average people are small businesses if you have private currencies that are not regulated. second, central banks should be involved because they can provide efficiencies and safety that make private currencies irrelevant. third, they should not be getting involved just because it is digital just as a people money. -- just to save people money. they should not be getting people involved to try to drive down negative rates. as governor brainard said at a speech earlier to

do you think it's been fair or unfair that libra or calibra has been targeted the way it has been byfair for regulators to ask lots of questions about any proposal by an american company to massively change how payments work i think perhaps some of the stuff thrown at facebook in this case are about totally irrelevant issues and that's going to be zuckerberg's big challenge today. a lot of the things people talk about are relevant to what kind of policy facebook has and political ads and the none of that has to do with the security and safety of a cryptocurrency he's going to have to privet off of those concerns. >> why do you think facebook led with its foot forward or backwards or whatever, but as the leader of this group, as opposed to when they first came out of it, some companies that have distanced themselves from this effort, but rather than make it a facebook effort, make it a collective? >> that's a good question. i think clearly david marcus, the former president of paypal who ran the messenger group at facebook through huge growth, he's the brains behind the project and i

>> so this is something that at calibra, the wallet we're building, that we've looked at a lot.ramp, costs are going to be very minimal. so, you know, think about it as, you know, 10 to 25 basis points. if you're unbanked, you'll have to rely on cash in and cash out. there it will vary on 1 to 2%. in some places of the world maybe 3%, but that's still less than half of the current cost of 7% of moving money around the world and there was a goal from the united nations of reducing cross border payments to 3.5% and we would be way, way, way below of that goal that was set for many years away from now >> and just to put a fine point on it, does facebook collect that transaction fee >> no, that would be partners that will actually operate agents network for cash in and cash out or in the case of banked users they would use a debit card to buy libra and there would be debit card fee rates associated with it. >> so there's revenue associated with this for facebook it comes in what form? >> so revenues from facebook, one indirect so 90 million small businesses, 2.7 billion people on th

my take is calibra is the play if facebook can tell when you open your wallet, doesn't have to have controlthe currency to make money, it can do that t attribution, tell how effective marketing is, become a big player is that what's important for facebook >> no. you threw a currency party and nobody showed up you and i talked about this. i said it is not going to go down as easily as facebook announced it you need payments players involved this is a global -- one of the things, playing well with people is important, being a partnership. facebook is used to a dominant role here. with currency, health care, anything that has to do with regulation, cars have to be done in partnership with government and partnership with other companies, partnership with citizens, elected officials. currency is a global, worldwide network of cooperation in a lot of ways. it is in fact that so you need these players to be in there this is not a good sign. they can have the currency within the facebook system but it will be separate, different from a wider change in the way you spend. >> is that the golden fleece

look at facebook, looking to support libra, the currency it started and now released into the wild, calibrae, are you comfortable with tech companies making those kinds of moves and what questions or concerns would you have before something like that goes live in the united states? >> we learned better than to comment on specific companies or currencies, crypto currencies on air, but i will tell you this much any company looking to engage in something as innovating as crypto assets, crypto currencies, needs to think carefully about what the regulatory framework and potential for abuse is that's something while the regulators don't want to stifle it, personally i don't want to survival innovation, i believe the united states of america needs to remain the preeminent place for technology and innovation to happen, meantime, we need to consider what things are abusive in the system. there's potential for widespread abuses until we're comfortable that companies rolling this out know the potential abuses for negative things to happen is, we'r comfortable on the regulatory side that this is someth

why should we believe what you and calibra are saying about protecting customer privacy and financial >> well, congresswoman, i think this is an important question for us on all of the new services that we build. we certainly have work to do to build trust. i think that the settlement and order that we entered into with the ftc will help us set a new standard for our industry in terms of the rig or for the privacy flam we're building. we're now basically building out a privacy program for people's data that is parallel to what the sarbanes oxley requirements would be for a public cop people's financial data. in terms of audits internally, any manager who's overseeing a team that handles people's data has to certify quarterly that they're meeting their commitments, and that goes up to me. and vile to certify that. >> thank you for your answer. it has been publicly reported that when you require what isapp, facebook officials coached the company's founder to tell european regulators that it will be, and i quote, really difficult to merge or blend data. between facebook and whatsapp, and

concerns over excessive arrogation of power that animated the constitution's delicate structure and its calibraof authority among the three branches of the national government. the expansive notion of constitutional immunity invoked here to shield the president from judicial process would constitute an overreach of executive power. as articulated, such sweeping doctrine finds no support in the constitution's text or history or in germane guidance charted by rulings of the supreme court. bared to its core, the proposition the president advances reduces to the very notion that the founders rejected at the inception of this republic and that the supreme court has since unequivocally repudiated, that a constitutional domain exists in this country in which not only the president but relatives and persons and business entities associated with him in potentially unlawful private activities are in fact above the law. this court finds aspects of such a doctrine repugnant to the nation's governmental structure and constitutional values." repugnant. so that was the somewhat clarion ruling of the federal d

there's libra, the association, a bunch of different organizations and calibra, the digital wallet we'rehis digital wallet and embrace bitcoin and the crypto currencies that exist, that might change the narrative. >> i think it would change it in the opposite direction if everybody has a digital wallet and bitcoin is now available and other types of currencies that are completely uncontrollable, i would think it would create a bigger problem. no >> possibly, but the governments are upset about both, right? so i think that by providing digital wallets, it again on ramps a bunch of people to digital currencies which is inevitable. >> by the way, libra says they're going to become public five years from now. they're going to start working on it. to their credibility, they really couldn't be public today because it wouldn't scale for them so they did have to develop their own technology. >> aviva, we want to thank you we've got to run anthony, thank you. >> looking like a rug, like a persian rug that's two years old, three years old or one that's -- you cannot get the batina of a real authen