David Marcus, the co-creator of Libra and the CEO of its wallet Calibra is the leading name who opened up to critics over Libra. While authorities are bashing at Facebook’s proposed cryptocurrency, stating Libra is a risk to Monetary sovereignty of nations, Mr.Marcus in his claim said he wanted to ‘debunk’ that nation.
To remind, France was the latest country criticizing Libra and calling it as a threat to monetary sovereignty. Accordingly, France’s Economy and Finance Minister, Bruno Le Maire made a serious note on Libra and said that France will not allow Libra in Europe. Marcus in his series of a Twitter thread on Monday says that Libra is primarily built as a better payment network and system over and above the existing currencies across the world. He claims no new money is on the table and elaborates it works as 1:1, means that the Libra’s existence will be the equivalent to the country’s reserve – henceforth, the function will strictly remain the province of a sovereign nation.
Libra will be backed 1:1 by a basket of strong currencies. This means that for any unit of Libra to exist, there must be the equivalent value in its reserve, said Calibra chief. We also believe strong regulatory oversight preventing the Libra Association from deviating from it’s full 1:1 backing commitment is desirable.
Ever since Facebook announced Libra, it is facing setbacks over setbacks from the regulators and politicians from around the world. However in his claim, Mr.Marcus further states the team is optimistic for Libra’s collaboration with the government and explained, they continue to engage with lawmakers, regulators and central banks “address their concerns through Libra’s design and operations”.
As the social media giant Facebook earlier stated their intention of launching Libra in mid-2020, Marcus expressed his concern of focusing on Calibra, crypto wallet for Libra. He concluded saying;
Separately, I’m looking forward to the Libra Association taking on full leadership of the project soon after its charter has been ratified so I can focus on building @calibra .
Image Source – The Business Journal