ETH Pioneer Mihai Alisie Questions Libra’s Centralization And How It Could Affect Users’ Privacy

The co-founder of Ethereum (ETH) Mihai Alisie considers that Facebook could erode users’ privacy with the new digital currency called Libra. As reported by Bloomberg, Mihai Alisie fears the erosion of privacy and corporate control of the network.

Libra Could Affect Users’ Privacy

During a conversation with Bloomberg, Alisai explained that projects such as Libra could affect users’ privacy due to the fact they are going to be scrutinized by financial regulators. Thus, this is something that would clearly affect the ethos of the blockchain space.

About it, he commented:

“Regulated blockchain projects like Libra would subject blockchain users under the watch and scrutiny of financial regulators. This would totally erode the privacy expected of the blockchain.”

Facebook announced the Libra digital asset on June 18 and the market reacted positively about it during the days after the announcement. However, many regulatory agencies around the world have been very reluctant to accept this virtual currency and are requesting Facebook for more information about it.

It is worth mentioning that Maxime Waters and other members of the House Financial Services Committee requested Facebook to stop the development of Libra until regulatory issues become clear. This is why Mark Zuckerberg and the head of Libra’s project David Marcus will have to answer questions from legislators in just a few days.

Libra has also experienced some issues with regulators in India, Iran and China. In addition to it, regulators in France, Italy and the United Kingdom have also raised their concerns about this new project started by Facebook.

Alisie is worried about what companies may do to the network, for example, it is not going to be censorship-resistant. For example, a user could have its transactions blocked or reversed if there is a company that does not agree with a specific transaction.

There are also many other critics to the project released by Facebook. For example, Joseph Lubin, another co-founder of Ethereum, explained that the project is centralized despite claiming that it is decentralized.