The head of Calibra at Facebook, David Marcus has asserted that Libra users will not have to put their trust in Facebook. He stated that Facebook is not the only member on the Libra network. According to him, they are letting go of the control they have over the network. Marcus said this in a post on July 3.
Per the publication,
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.
Prior to this announcement, Olaf Carlson-Wee, the CEO of Polychain said,
I think that the strategic move for Facebook would actually be to build public infrastructure. And that public infrastructure could be incorporated onto all the Facebook platforms, which of course are proprietary. But that public infrastructure, if they don’t try to own it, I think that’s where they will have the most success.
Libra’s Financial Data Won’t Be Available on Facebook
In his post, Marcus noted that Facebook owns Calibra, a crypto wallet firm as a subsidiary. However, Calibra would not share any financial information on the social platform. On top of this, Marcus stated that Libra’s users would be free to use a wide range of custodial and non-custodial wallets from different firms. Also, the coin’s adopters can use software wallets, which they would operate by themselves.
In the post, Marcus added,
Bottom line: You won’t have to trust Facebook to get the benefit of Libra. And Facebook won’t have any special responsibility over the Libra Network. But we hope that people will respond favorably to the Calibra wallet. We’ve been clear about our approach to financial data separation and we will live up to our commitments and work hard to deliver real utility.
An example of a non-custodial wallet that recently provided a proof-of-concept demonstration that supports Libra is Zengo. Reportedly, this wallet removes the need for storing private keys. Instead, it uses a key-like solution that is spread among separate multiple parties.
This news comes after the US House of Representatives Committee on Financial Services called for the suspension of the Libra project. The legislators wrote a letter to Facebook’s CEOs Mark Zuckerberg and David Marcus, and COO Sheryl Sandberg on July 2. They requested that the firm and its partners halt the Libra and its Calibra wallet project temporarily.
According to the lawmakers, the project may create a new global financial system that is Switzerland-based. They believe that further development of Libra would cause serious problems. This is because the coin seeks to rival the US monetary policy and the Dollar.
Do you think the Libra project might lead to the collapse of the US monetary system? Let us know in the comments below.