Libra amid backlash
About two weeks ago, Facebook announced it will be launching its own cryptocurrency. This was not only criticized by investors within the cryptocurrency space who believe in the decentralized nature of Bitcoin and other cryptocurrencies, but also other corporations and governments.
Russia, for example, said they won’t be allowing Libra in the country while the US and other countries in Europe have concerns over the power Facebook will have if Libra takes off.
Today, Facebook’s cryptocurrency chief has thrown more light on Libra amid backlash from many on the upcoming project. David Marcus, the cryptocurrency chief of Facebook on a Facebook post stated;
“Facebook will not control the network, the currency, or the reserve backing it… 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.”
He went further to compare Libra to Bitcoin saying that though Libra is not as decentralized as Bitcoin, the Libra blockchain is designed to be open.
What’s in for Facebook?
On the point of whats in for Facebook, he argues that;
“Facebook will first benefit from it by enabling more commerce across its family of apps. More commerce means ads will be more effective, and advertisers will buy more of them to grow their businesses. Additionally, if we earn people’s trust with the Calibra wallet over time, we will also be in a position to start offering more financial services, and generate other revenue streams for the company” David Marcus.
As to how this will help the unbanked, he stated;
“The current system is designed in such a way that if your balance falls below a certain threshold, you’re charged fees you can’t afford. The very people who say they lack the money to open a bank account are actually not saying that they have no use for modern financial services. They’re just saying they can’t afford to access the system, so they remain on the fringes and are forced to use services that charge exorbitant fees and rates.”
What are your thoughts on Facebook’s clarification on the Libra amid backlash of project?