The Libra Association and Facebook took a lashing during their first day of congressional hearings on Tuesday. Wednesday wasn’t much better.
Rep. Alexandria Ocasio-Cortez (D-NY) focused on a comment David Marcus, CEO of Calibra, made yesterday when he said he would trust all of his assets in Libra.
“You said yesterday you would be comfortable taking 100 percent of your pay in Libra. In the history of this country, there is a term for being paid in a corporate-controlled currency,” she said. “Do you know what that term is?”
Marcus said he did not. Ocasio-Cortez continued,
“It’s called ‘scrip.’ Do you think there’s a risk in taking your pay this way?”
Marcus did not answer the question as Ocasio-Cortez ran out of time.
Ocasio-Cortez Accuses Facebook of Using Shady Corporate Tactics
Scrip is a substitute for the government-issued legal tender that some companies use to pay their employees. Employees can only use scrip at company stores, where the companies can engage in price-gouging. Remote logging and mining camps that were cash poor have used the tactic in the past.
More recently, Amazon has been accused of scrip-tactics. The company rewards efficient employees with “Swag Bucks.” Employees can then use these Swag Bucks to purchase Amazon-themed merchandise.
The liberal U.S. Senator criticized this technique in June, tweeting “it’s a tactic powerful organizations use to take over towns and control local workers.”
Company money is a tactic powerful corporations use to take over towns & control local workers by paying them in fake “currency.”
It’s happened all over, from West Virginia coal mines to Puerto Rican sugar plantations.
So what about when people get paid in… Amazon gift cards?