Blockstream’s Samson Mow: “Facebook Should Have Just Used Bitcoin” Regarding Libra Project
The combative hearing in the U.S Congress in the past two days left citizens and other onlookers with much doubt on the success of Facebook’s Libra. While Bitcoin (BTC) caught on a bullish vibe across the financial committee led by Maxine Waters, Libra’s CEO David Marcus was under fire on the privacy of data issues and the government’s role in the creation of national currency. Blockstream CSO, Samson Mow tore into Libra after the hearing claiming Facebook
“should have used Bitcoin.”
Marcus has No Idea of Libra Cryptocurrency
In a thread of tweets aimed at David Marcus hearing on Libra, Mow tears down the CEO’s responses claiming that “Marcus has no idea what he is building”. Libra token is set to provide a free open source software for developers but challenges with compliance hinder this goal. Mow says,
“The crux of the issue is that Marcus has no idea what he is building, while also conflating FOSS with open permission less systems. @Libra_ can't be everything for everyone, and it can't be both open and closed at the same time.”
Calibra CEO, David Marcus in Congress (Image: Shutterstock)
Speaking to Congress, David said that the Libra network will be open sourced allowing the community to build on it and develop the code without any control to Facebook. He said the company will be relinquishing its control over the codebase and the network giving full control to the public – Mow disagrees with the statement.
The CEO of Libra contradicted himself in a later statement:
“Wallets will enforce the sanctions that are led by our national security apparatus and treasury.”
Samson Mow, CSO at Blockstream, believes Libra should have selected Bitcoin (Image: Twitter)
This shows that users of the Calibra wallets will not have total control over their funds and Facebook can freeze the funds if they deem the funds a matter of national security. Bitcoin provides users with a purely open platform that does not require KYC compliance requirements which frankly, Calibra wallet cannot match.
“The senators were so close in their questioning. If they connected these two points, it would have been much more interesting.”
– Samson Mow, Twitter
Libra Can Only Be Centralized to Follow Compliance
Mow claims that the decentralized and open-source trajectory set for Libra is not ideal as the compliance laws and legal requirements required by the government will see the project become centralized. He states,
“The only way for Libra to guarantee compliance in all areas is for it to be in complete control. You can't have only Calibra wallets requiring authenticated government ID's but not others. Only way it would work is with two pools of currency that are not allowed to intermingle.”
Why Not Bitcoin?
Every element of the Libra project is highlighted by the abilities of the pioneer cryptocurrency, Bitcoin. Mow questions the hustle took to build a totally new platform that raises more questions than solutions when there is a perfect coin for the job. On his concluding statements to Congress, Marcus promised to take time to get things right with Libra which may present an awesome opportunity to address the issues. Or maybe Facebook should have selected Bitcoin.
“Once Libra is compliant with every jurisdiction, it will just be a more complex PayPal governed by an association. Should've just used #Bitcoin.”