David Marcus of Facebook, who is the lead in charge of the hotly debated Libra project, has come out with a post intended to calm the concerns of the project’s critics, of whom there are seemingly many.
In fact, the US House of Representatives Financial Services Committee has requested a moratorium on the project, anticipating severe problems in the financial space because of its launch. Now, Marcus has come out in defence of the project he has been tasked with.
His post first addresses the people who feel that the system is not decentralized like cryptocurrencies are supposed to be. “We totally get the point”, Marcus writes. He explains why the Libra Association was formed as a consortium of major corporate players. He writes:
“But it was important to start with trusted entities that could operate in a regulated environment and with the operational expertise required to ensure the integrity of the network in its foundational stage.”
At the same time, he was careful to point out that the company is still definitely planning to move towards a completely decentralized model. He said that they are committed to gradually transitioning to a permissionless state in the years to come.” In the meantime, he said:
“I’d argue that one hundred geographically distributed, industry-diverse organizations is quite decentralized.”
As Marcus explained, Facebook is truly serious about its willingness to ensure financial commitment. He said that they were convinced that if Libra attained considerable success, it would translate to a “non-linear step change for billions of people who need it most.”
Marcus also addressed the issue of financial regulations, and how Libra will feature in the scheme of things. He wrote:
“At the core, we believe that a network that helps move more cash transactions—where a lot of illicit activities happen—to a digital network that features regulated on and off ramps with proper know-your-customer (KYC) practices, combined with the ability for law enforcement and regulators to conduct their own analysis of on-chain activity, will be a big opportunity to increase the efficacy of financial crimes monitoring and enforcement.”
Will this impassioned defence hold the critics off? Only time will tell but it doesn’t seem likely.