The head of Facebook’s digital currency venture Libra, David Marcus, said that the organization stays determined in launching Libra next year, regardless of mounting pressure from the regulators.
Even though formally declared in June, Libra has experienced harsh criticism from regulatory bodies all around the world that is considerate about the effect of the social media platform, actually launching acurrency. Moreover, Libra will purportedly be supported by assets and have 28 member associations to supervise the project to give more prominent trust and security.
Moreover, Facebook’s cryptocurrency project announced that it broadens into e-commerce, is a prominent attempt to pull cryptocurrencies into the real-world. Further, Libra will be supported by real-world resources, which comprises of short-term government securities and bank deposits.
Regardless, Marcus revealed to a Swiss newspaper that it was not likely that Libra would turn into a backbone for authentic transactions. Instead, he sees the venture as a method for cross-border payments and clearing small amounts. Also, Marcus highlighted the test of user acceptance, considering it as a more prominent obstacle for Facebook’s digital currency than conquering regulatory proceedings.
Marcus, in his latest interview with Swiss newspaper reportedly stated,
The goal is still to launch Libra next year. Until then, we’ll need to address all questions adequately, create a suitable regulatory environment.
Over and above, Marcus also took the chance to talk about the concerns communicated by global regulators that permit Facebook the control to issue money would intrude with sovereign monetary policy and would destabilize the financial framework. As indicated by him, Facebook’s issuance of Libra will not intrude with monetary policy because the project will not develop new cash, which could impact yields or interest rates.
Moreover, the new cash, as Facebook referenced in the Libra whitepaper, will be supported by the sovereign cash of various nations and other authentic assets like short-period Government securities.
In the meantime, David Marcus affirmed that the launch of the Calibra wallet, which offers access to Libra, would be predominantly made accessible to their clients who live in nations where regulators endorse it.
Besides, Marcus opined that it was not likely for Libra coins would turn into methods for payment for regular authentic transactions in nations like Switzerland, Germany or France, however, would prefer to be utilized for cross-border payments.