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00:00EMILY: FOR TWO DAYS THIS WEEK, FACEBOOK'S STEPHEN MARCUS WAS PEPPERED WITH QUESTIONS ABOUT THE NEWLY PROPOSED CRYPTOCURRENCY, BUT THERE WAS ONE QUESTION OR STATEMENT THAT SEEMED TO CATCH HIM COMPLETELY OFF GUARD. TAKE A LISTEN. REP. SHERMAN: WE ARE TOLD BY SOME THAT INNOVATION IS ALWAYS GOOD. THE MOST INNOVATIVE THING THAT HAPPENED THIS CENTURY IS WHEN OSAMA BIN LADEN CAME UP WITH THE INNOVATIVE IDEA OF FLYING TO AIRPLANES INTO THE TOWERS. THAT IS THE MOST CONSEQUENTIAL INNOVATION, ALTHOUGH THIS MAY DO MORE TO ENDANGER AMERICA THAN EVEN THAT. EMILY: THAT WAS REPRESENTATIVE BRAD SHERMAN OF CALIFORNIA'S 30TH DISTRICT, WHO JOINS US FROM WASHINGTON. THANK YOU SO MUCH. CERTAINLY A VERY PROVOCATIVE STATEMENT WE HEARD YOU MAKE. WHAT EXACTLY DID YOU MEAN? REP. SHERMAN: LET ME CLARIFY. A ZUCKERBERG IS NOT AS EVIL AS OSAMA BIN LADEN, BECAUSE THE HARM THAT ZUCKERBERG WILL DO IS AN UNINTENDED PRODUCT OF HIS EFFORT TO MAKE HUNDREDS OF BILLIONS OF DOLLARS MORE. BUT THE FACT IS, IN CREATING A TOOL FOR DRUG DEALERS, THAT IS GOING TO RESULT IN DEBTS ON THE STREETS OF AMERICA EVERY DAY. BY CREATING A TOOL FOR TAX EVADERS, THAT IS GOING TO MEAN THAT THE FEDERAL GOVERNMENT CAN'T FUND CANCER RESEARCH OR CAN'T FUND THE DEFENSE OF THE UNITED STATES TO THE DEGREE THAT WE WOULD LIKE TO. AND BY PROVIDING A METHOD FOR SANCTIONS EVADERS WHO ARE GOING TO MAKE IT MUCH MORE DIFFICULT FOR THE FEDERAL GOVERNMENT TO PREVENT IRAN AND NORTH KOREA FROM DEVELOPING NUCLEAR WEAPONS. ZUCKERBERG DOESN'T INTEND ANY OF THOSE OBJECTIVES. HE IS JUST INTENTIONALLY DISINTERESTED IN WHETHER THAT OCCURS. THE FACT IS THAT THE POWER OF THE DOLLAR, OUR ABILITY TO CONTROL OUR BANKING SYSTEM, IS A KEY TO THE ECONOMY OF THE UNITED STATES, WHICH SAVES AT LEAST $100 BILLION PER YEAR IN BORROWING COSTS, BECAUSE WITH A -- WE ARE THE RESERVE CURRENCY OF THE WORLD. IT IS KEY TO OUR SANCTIONS PROGRAM, WHICH IS MOST EFFECTIVE WHEN WE CONTROL DOLLAR TRANSACTIONS. IT IS EFFECTIVE IN OUR EFFORTS TO PREVENT DRUG KINGPINS AND HUMAN TRAFFICKERS. THE INTENT OF THIS LIBRA, WHICH I CALL A ZUCK-BUCK. THE INTENTION IS TO UNDERMINE THAT WHOLE EFFORT. I KNOW ZUCKERBERG IS UNDER ATTACK BECAUSE HE UNDERMINES AMERICAN PRIVACY. HIS RESPONSE IS TO BECOME A PRIVACY ADVOCATE FOR TAX EVADERS, TERRORISTS, SANCTIONS EVADERS, DRUG DEALERS. I THINK THOSE ARE THE FOLKS WHO SHOULDN'T HAVE FINANCIAL PRIVACY. EMILY: WE WILL GET THERE. FOR WE GO, ON THE 9/11 STATEMENT , OBVIOUSLY WHAT YOU GOT OUR ATTENTION. SOME AMERICANS MIGHT HAVE BEEN OFFENDED, SOME MIGHT HAVE THOUGHT IT WAS TOO FAR. WHAT IS YOUR REACTION TO THAT? REP. SHERMAN: THE NUMBER OF DEATHS THAT WILL OCCUR IN AMERICA IF THIS IS SUCCESSFUL IN PLAYING THE ROLE IT IS INTENDED WILL EXCEED WHAT WE LOST ON 9/11. THE ADDITIONAL HEROIN DEBTS, THE INABILITY TO FUND CANCER RESEARCH, THE LACK OF SUCCESS OF OUR SANCTIONS WILL BE VERY IMPORTANT. THEY WILL NOT BE ALL OF THE SUDDEN. THEY WILL NOT BE ONE BIG PICTURE, ONE BIG DAY. I HAD TO BE ASKED BY A REPORTER, DOES THAT MAKE A ZUCKERBERG AS EVIL AS OSAMA BIN LADEN? CLEARLY NOT. BIN LADEN WAS TRYING

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Facebook's Libra Could Be More Dangerous Than 9/11, Rep. Sherman Says

Rep. Brad Sherman, a California Democrat, discusses his concerns about Facebook Inc.'s plans for a new cryptocurrency. He speaks with Bloomberg's Emily Chang on "Bloomberg Technology." (Source: Bloomberg)

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