Libra Coin’s David Marcus Addresses Trust Issues Present In Facebook’s Cryptocurrency

  • David Marcus explains Facebook is not going to be controlling the Libra network
  • Facebook launched a stablecoin called Libra two weeks ago

The head of Facebook’s blockchain group, David Marcus, wrote a Facebook post in which he talks about Libra two weeks after releasing it. In this post, Mr. Marcus addresses several trust issues related to the digital asset they are working on.

David Marcus Defends Facebook’s Libra

In this article released by Marcus, he explains that Facebook is not going to be controlling the network, the currency or the reserve backing it. Facebook will only be among over a hundred members of the Libra Association. That means that they are not going to be having any special rights or privileges compared to other institutions in the network.

About it, he wrote:

“Facebook will only be one among over a hundred members of the Libra Association by launch. We will not have any special rights or privileges. Facebook created a subsidiary — Calibra — that will operate a wallet service on top of the Libra Network, and while Facebook, Inc. owns and controls Calibra, it won’t see financial data from Calibra.”

In addition to it, Marcus explained that he would be testifying before the Senate Banking Committee and the House Financial Services Committee. In just a few weeks, he will be talking about the project and addressing the doubts and questions that regulators could have.

There are different regulatory agencies around the world that are currently worried about Libra and how to regulate it. Japan’s Central Bank, for example, explained that it is not the same to regulate digital currencies compared to fiat currencies.

Libra is a stablecoin that will be backed by different assets and currencies such as the US dollar, the euro, the Japanese yen and the British pound.

Facebook has recently released the white paper related to the Libra project and how the digital asset would be able to give access to financial services to those individuals that cannot currently access them. Thus, everyone with a $40 smartphone and connectivity would be able to have access to the financial world through Libra. It would be possible to send and receive funds, make payments and store value on their wallets.

Libra is going to be controlled by just some entities once it is launched, and Facebook will just have the same power and influence as all the others. Some of these firms that are expected to be part of the network include Mastercard, Visa and Uber, among others.

Posted by David Marcus on Wednesday, July 3, 2019

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