David Marcus, the current Facebook Blockchain chain recently wrote a blog article that sort to defend and clear the air about Libra and complaints that the company has too much control over it. One of the highlights of the blog post is that Facebook will not control the currency.
Libra Cryptocurrency by Facebook Supported by David Marcus
Exactly two weeks after announcing plans to fully launch Libra cryptocurrency, one of the top executives at Facebook as come out to support the digital currency and the idea behind it. In his most recent article, David Marcus states that the company will not control the currency, the network, or the reserve backing it.
He further states that Facebook, despite being the creator of the cryptocurrency, will act as one of the members of the Libra Association, which at the moment has more than 100 members. “We have no special privileges or rights”
David also stated that the custom digital wallet for Libra cryptocurrency dubbed Calibra would be one among hundreds if not thousands of other cryptocurrency wallets in the market. However, he does not deny the fact that Facebook stands to benefit in terms of competitiveness and revenue from this project. This is based on the fact that the cryptocurrency will make it easy for users to make use of Facebook services to send and receive money conveniently and securely.
One of the challenges that Facebook will face as it prepares to launch Libra cryptocurrency is gaining the target audience trust and confidence. It is not clear whether people will trust the company with their personal data and finances following recent cases about data theft in the social network.
Another major contradiction in this project is that while Project Libra was done under great secrecy that oversaw its launch, the company seems focussed on transferring control of the cryptocurrency to its body of partners who are in the Libra Association. The partners include credit card companies, payment brokers, and non-profit organisations. Transferring control will not be successful if the company is unable to convince its partners that there is a reason to join the team.
There is also a select group of cryptocurrency experts who are wondering why Facebook spent time and resources to create a completely new digital currency instead of coming up with a payment system that is in line with its products and services. Other tech companies such as Apple Pay and PayPal allow their customers to send and receive money electronically without requiring them to convert it to a new form of currency.
“ With Libra, anyone with a $40 smartphone and internet connectivity will have the ability to securely safeguard their assets, access the world economy, and transact at a much lower cost, and overtime access a whole range of financial services. We firmly believe that if Libra is successful, it can be a non-linear step change for billions of people who need it the most.”