Rep. Joyce Beatty, D-Ohio. Tom Williams | CQ-Roll Call Group | Getty Images

Lawmakers interrogated David Marcus, Facebook's cryptocurrency chief, asking how the company will educate the 1.7 million unbanked customers it plans to reach. Elected officials at the House Financial Services Committee hosted a hearing on Wednesday to discuss the social media company's plans for its proposed digital currency Libra. "How do you take somebody from my district who is underbanked or unbanked and educate them if there's no financial literacy?" asked Rep. Joyce Beatty, D-Ohio, at the hearing.

She expressed concern about the lack of financial education for the unbanked and underbanked, who might not understand how Libra works. "Where is my protection? What happens if I do this, and we already know I'm ignorant to the process, and then I want my Libras back?" asked Beatty. "With no problem, can I put that money back into my account?" Marcus assured Beatty that those individuals would be able to get their digital currency back, but he did not address the broader issue of financial literacy.

The importance of education

A visual representation of digital cryptocurrency coins on display in front of Facebook and Libra logos. Chesnot | Getty Images

Tyrone Ross Jr., an investment advisor specializing in cryptocurrency in Woodbridge, New Jersey, agreed with Beatty that education for the unbanked needs to be a priority. "Financial literacy, absolutely, should be a part of it," he said. The Libra Association, the Geneva, Switzerland-based group of companies that will govern the Libra blockchain and reserve, should provide financial literacy and education so customers know how to bank appropriately, Ross said. Member companies in the association include Visa, Uber and Coinbase.

Global representation

Rep. Ayanna Pressley (D-MA) on Capitol Hill in Washington, July 17, 2019. Joshua Roberts | Reuters

The issues around financial literacy reach beyond U.S. borders. Rep. Ayanna Pressley, D-Mass., expressed her concern about the lack of representation from the seven countries where an estimated 50% of the world's unbanked live, according to data from the World Bank. Those countries are Bangladesh, China, India, Indonesia, Mexico, Nigeria and Pakistan. When Pressley asked if any of Libra's partners are located in these countries, Marcus admitted none of them were. "Not at this stage, Congresswoman," he said. "But by the time we get to 100 members, we hope to have a more representative slate of the people we want to serve."

Lending risks

David Marcus, CEO of Facebook's Calibra, testifies to the House Financial Services Committee hearing on "Examining Facebook's Proposed Cryptocurrency and Its Impact on Consumers, Investors, and the American Financial System" on Capitol Hill in Washington, July 17, 2019. Joshua Roberts | Reuters