R3 Enterprise Software CEO, David Rutter, Terms Libra’s Announcement by Facebook ‘Naïve’
David Rutter, the CEO of R3, has criticized the approach taken by Facebook in announcing its Libra crypto project. The software enterprise CEO termed the move as ‘ridiculously stupid’; stablecoins have been a topic of concern among regulators since the summer announcement.
Rutter said that Facebook’s Libra crypto is not designed from a point of understanding but rather to make a statement within the new blockchain and crypto space. He added that the move is naïve given that the Tech giant is looking to penetrate a market largely dominated by financial institutions over the years;
“When we saw [Facebook] talking about doing a basket of currencies with weighting, in reality when we want to translate that back to real-world currencies it’s not simple. […] It’s really naïve.”
Furthermore, the dominant nature of Facebook globally fueled scrutiny from financial regulators. As of the press date, both the U.S senate and House of Reps have already summoned Mark Zuckerberg to address their concerns about Libra.
Consequently, other stablecoin projects are under pressure from authorities although some like the USDC coin have been given a clean pass by established auditor, Grant Thornton LLP.
Facebook’s Payment Solutions
The Libra association has continued to develop the network although the digital asset launch is on hold. So far, 51,000 transactions have been done within Libra’s ecosystem with over 25 FinTech projects launching on the platform. Facebook’s fiat pay avenue ‘Facebook Pay’ meant to operate on WhatsApp, Instagram and Facebook Messenger is also among the notable milestones.
In the next few months, Libra plans on launching a couple of products that will reduce the oversight work done by Libra Association on the project’s development. A technical steering committee and a new Contributor License procedure are among the expected solutions.