David Marcus in-charge of Facebook’s blockchain is pressing against concerns about the social media giant’s new cryptocurrency project, Libra.
In a note published Wednesday on Facebook, Marcus addressed some issues arising on the new project Libra ranging from a number of questions and a few misunderstandings about the project in a note published Wednesday on facebook.
The social media giant’s blockchain lead also confirmed He also confirmed that he would be testifying on the project later this month before both the Senate Banking Committee and the House Financial Services Committee.
Marcus cited some issues bordering on the project Libra recently and sought to address a number of those issues that have been raised by lawmakers and informed observers. There are questions on the structure of Libra, whether it is actually decentralized, why there is no charter in place for the Libra Association and if it’s possible that financial inclusion will be actually addressed by Libra.
A white paper and supporting documentation for Libra was published last month by Facebook , but was immediately faced with pushback from regulators worldwide.
Most notably, was the distrust of Facebook in the wake of Cambridge Analytica, where he handled the issue including 2016 election interference and other high-profile problems.
You don’t have to trust Facebook to get the benefit of Libra, this is main fact” Marcus confirmed, adding further:
“ Facebook won’t have any special responsibility or control over the Libra Network. We also hope that the Calibra wallet made by Facebook will receive much approval and people responds favourably to it. Talking about financial data separation, We’ve been clear about our approach to it and we will live up to our commitments and promises as we work hard to deliver.”
More complaints continued to come up which Marcus addressed accordingly about the project, including concerns on Facebook’s track record on consumer data protection and whether Libra would be able to bank individuals who are currently under- or unbanked.
“Some people cited lack of enough money as key reasons people are unbanked and therefore, Libra will not be able to solve this problem as written by Marcus which he refuted saying the reasons are misleading.
For anyone with “a $40 smartphone and connectivity, ” according to his view, Libra would lower the drawbridges to financial services.
From the Calibra subsidiary’s public documentation, Marcus also repeated his statement in noting that Facebook would not have access to any financial data from the wallet provider as well.
He also claimed that ,“there will be many ways in which to use Libra and access the network by people,” he said. “Users will be able to use various custodial and non-custodial wallets that will have full interoperability with one another, this means that you’ll be able to use a software wallet you would operate on your own or pay and receive payments across wallets from different companies.”
According to Marcus, “the company’s profit pattern for Libra would come from various commerce that occurs across its family of apps by ensuring that ads are more effective and advertisers are more motivated to buy space on Facebook’s platforms.
In conclusion, Marcus stated their zeal towards making sure that the continue to engage with other communities and stakeholders. Your feedbacks are expected and we are committed to take our time to get this right. Marcus said in his conclusion.
Furthermore, Libra will be controlled by a small number of entities at launch for now but over time it will gradually decentralize.
One of 28 founding members for the Libra Association , Facebook which is the governing association , will be responsible for overseeing the Libra network after it’s launch and will ultimately have the same amount of power over the network than its other launch associates. Though one can always assume that Libra is only associated with Facebook but looking inwardly, that’s not the case.
The Libra Association must strive to gradually decentralize blockchain further as it seem no much decentralised blockchains available , he said. “To limit the amount of influence, Facebook has over the network, there are other bodies working together with Facebook as each of the founding members will take part in setting up the Libra Association’s governance rules and other key decisions,” Marcus stated.
Credits: Nikhilesh DeJOIN OUR COMMUNITY