A counterterrorism expert breaks down concerns over Libra cryptocurrency



Libra raising concerns about privacy data sharing and national security for more now let's welcome security expert Richard Clark he served as White House a counterterrorism coordinator under President Clinton and George W Bush it became the first White House cybersecurity chief and his new book is titled the fifth domain defending our country our companies and ourselves and the age of cyber threats Richard thanks for for joining us I think these companies are really eventually more allies than enemies are they not or do we just need to be very very careful I think we need to be very very explicit what we want out of them what the standards are that we're thinking they should live up to there are no international norms of behavior for social media companies they say they're doing the right thing now after 2016 what's the right thing we have a process in this country where we pass laws where we have regulations if we're going to say these companies should do things other than what they want to do on their own then we should have standards so we can all agree on what those standards are and then we can have some third party audit to see whether or not they're doing it kinda like touches is is the probably we just said congressman Franken and before the the main part of the discussion he was even talking about hate speech that they'd even hate speech you need a light touch on because of the of people's freedom to express what what some people think are crazy ideas but it's better than than censorship he mentioned in Germany you're not you can get thrown in jail if you denied the Holocaust wait this for this country is not Germany this country is a country I understand but do you agree it's to be a light touch or do you think do I do I think we should all know what that touch is who's going to decide what the touch is well devil is in the details so I think we have a process right if the Congress wants to set standards they can do that comfortable with Congress setting standards it does all the time and you know that I did comfortable you are you are comfortable with a lot of it because otherwise you wouldn't be drinking clean water or breathing clean air it's just a question of where the standards are how we get to them on this question of Libra they want to be regulated by the Swiss financial authority which i think is interesting but you know there is an issue here potentially of a problem with money laundering and so we have an international group of like-minded nations called the Financial Action Task Force which I used to work with it sets standards internationally why don't we ask the Financial Action Task Force to set standards for Libra not the Swiss so there is a path in your mind to get get getting a Libra like digital currency R is a there is a path an international path that we've trodden before to have like-minded nations all the leading I find that region to create standards from for anti money laundering let me ask you a question so Libra which we're gonna separate from Bitcoin but it right but because they're two very different things however bitcoins has moved higher a little lower in the past couple days in large part on the back of this idea that Libra is gonna be a great success get people more interested in this world at least I as I was watching the testimony yesterday thought to myself actually that if if Bitcoin ever reaches some form of escape velocity all of a sudden these regulators are gonna be all over it and therefore make it very difficult especially when it comes to the issues of money laundering and everything else because those are almost built-in feature sets of it which is actually different than than Libra where where at least there possibly could be more protections right so we lift blockchain with Bitcoin with Libra I think we have to ask ourselves what is the problem we're trying to solve you know why aside from making some people who thought of the idea of money means nothing wrong with that why are we creating this thing and is there another way to solve that problem whatever that problem is they say the problem is the unbanked well okay how can we address the global unbanked not just those in this country because there's the frictionless movement that's what he wants it for commerce there's also the debasement of the currency by every central bank in the world which is the real libertarian fervor of the bitcoiners is that they don't want to be the only thing that you have shouldn't be fiat that it's tied to nothing and it's not gold standard a more so that's that's that's biggest thing that's fine you know the in the end if the government has a concern and they're beginning to say that concern is is money laundering which finances all sorts of illicit activities around the world and is a national security problem let's have a dialogue about that how do you do this Libre thing and satisfy the standards that we've had now for 25 years on money longer the standards on Libre is still have Bitcoin out and I still have money laundering with cash it might be a little bit harder but it still happens so to make a call on this what do you think happens to Bitcoin and by the way the g7 is making this a big issue at their next believer not Bitcoin well I think it's gonna be a whole conversation I think it's gonna turn into a larger dialogue about crypto and the question is which way there is there is a legitimate state need to worry about money longer given its relationship to the organized crime to international narcotics to arms shipments to all sorts of bribery of government officials around the world if the government can satisfy itself whether it is Bitcoin or but it satisfies you I'd like to see what what Facebook has in mind for those rules so I'm here's a question I have as an investor that I'd like a problem you asked me what problem are we trying to solve here's a problem I want to take a million dollars right now and I want to wire it to London to buy five or six stocks in that currency the British Pound because they're not participants in the euro did you know what a hassle that is to do and this Libre promise is I could simply keep the million in Libre send it over there use that currency to buy those equities because I'm an investor I really like that idea that's fine look all I'm saying it's not just about Libre and it's not just about Bitcoin than watching it's about technology in general we rush technology to market and then we worry about what bad people can do to it after the fact whether that's 5g or quantum computing when you say worry who are you talking about we need this economy we Americans who invent things in Silicon doesn't that a good thing is a great thing that we invent them it's a bad thing that we worry about the malicious use of them after they don't know how we don't know till we put them in the market that's not true that's not true Wow that is not true if if you brought any of these products that have security problems and security flaws to security experts before you brought them to market those flaws could be identified and in many cases they are that's a very slippery slope you're going on because if you stop innovation ever be developed if they never gets developed it may trip no it you make it really expensive to do it that's the no you don't know no that's a mill and all this is all a myth propagated by people who just want to rush things to market oh it'll stop innovation Oh a little raise costs there's no there's no empirical basis for Europe there's no innovation over there in tack it's because it's regulated right out of the economy there's a lot of reasons there's no innovation it's certainly not because they're worrying about built-in security you

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