Facebook says Libra won't launch without US approval

Facebook CEO Mark Zuckerberg plans to tell Congress Wednesday that the company's planned Libra cryptocurrency won't launch unless U.S. regulators approve

Zuckerberg is trying to defend Libra and alleviate concerns that the currency could sidestep regulators. Analysts say Libra could avoid regulation and launch in countries where it's not receiving pushback, but this does not appear to be Facebook's intention.

Instead, Zuckerberg is pushing an optimistic vision of Libra and what it could mean for people around the world who don't have access to bank accounts.

"The financial industry is stagnant and there is no digital financial architecture to support the innovation we need," his statement reads. "I believe this problem can be solved, and Libra can help."

Libra has seen several high-profile defections among other companies that originally supported it, including Visa and MasterCard.

While some critics see those departures as evidence of Libra's likely failure, U.S. regulators appear to view it as enough of threat that they are considering the possibility of the Federal Reserve launching its own competitor currency.

"At the Federal Reserve, we will continue to analyze the potential benefits and costs of central bank digital currencies, and look forward to learning from other central banks," Fed Gov. Lael Brainard said in a speech last week.

Zuckerberg's remarks also play the China card, urging regulators to act quickly.

"While we debate these issues, the rest of the world isn't waiting. China is moving quickly to launch similar ideas in the coming months," Zuckerberg says in the statement. Marcus made a similar argument over the summer.

In 2018, when Zuckerberg spent two days testifying before Congress on privacy, competition and a host of other issues, his notes cited competition from China as a reason against breaking up Facebook.

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Associated Press Writer Marcy Gordon in Washington contributed to this story.