Trusted Third Parties Should Issue Stablecoins, Not Facebook
eToro believes partnering with authorised partners is the key to success for Libra.
eToro believes partnering with authorised partners is the key to success for Libra.
Amidst all the regulatory chaos, Facebook advances the development of its native cryptocurrency project Libra. In the latest update, Libra developers said that the network is running for five months and growing strong.
The Facebook Pay will be a unified payment service available across all Facebook apps like Messenger, Instagram, and WhatsApp. This service will work independently from Facebook’s Calibra network and wallet.
Ripple CEO Brad Garlinghouse said that Libra would not get off the ground for at least three years. He thinks regulatory scrutiny over Facebook’s crypto project is due to the social media giant’s privacy debacle last year.
PayPal was the only company noticeably absent at the recently held Libra Association meeting. The payment giant is reportedly planning to quit Facebook’s project to keep its hands clean of regulatory dirt.
The Libra Association mentions four key milestone to be achieved before the mainnet launch. The focus is to get at least 100 partners working as operating nodes on the Libra network.
The bankers have explicitly stated that Facebook’s Libra will pose huge threat to the consumer demand for deposit accounts, payment volumes, and business models built on privacy.
Talking at a blockchain event at the U.N. headquarters in Geneva, Libra’s managing director Bertrand Perez said Libra will not replace existing fiat currencies, but could help the UN achieve its SDGs as eliminating poverty and achieving gender equality.
ECB Board Member Benoit Coeure has warned that private stablecoins like Libra are posing big risk to the monetary sovereignty, however, they can also solve some of the burning issues.
David Marcus, the head of Calibra wallet, went on Facebook to explain the company’s motivation behind building Libra. David elaborates on why Facebook didn’t choose to build on top of existing systems, but rather chose to build a new one.