July 4, 2019 | AtoZ Markets - David Marcus the current Vice President of the Facebook Messenger unit has recently released an official note answering certain questions regarding upcoming Facebook Libra coin. David Marcus also explained in his letter is Facebook Libra token decentralized or not.
Facebook's David Marcus addresses misunderstandings about Libra
This Wednesday the head of Facebook Messenger and former head of PayPal published an official letter in which he touched some important points regarding Facebook stablecoin.
Marcus also confirmed he would be testifying before the Senate Banking Committee and the House Financial Services Committee on the project on July 16.
While speaking of Facebook getting benefits from Libra the head of Messenger noted, social media giant won’t have any special responsibility for the Libra Network and would not have access to any financial data from the wallet provider.
Instead, he expressed his hope, that people will respond favorably to the Calibra wallet (i.e. Facebook subsidiary). Marcus stated that profit for Libra would come from any commerce that occurs across its family of apps.
The former PayPal supervisor also addressed concerns that Libra would not be able to bank individuals who are currently under- or unbanked, as well as concerns about Facebook’s track record on consumer data protection. Marcus noted, Libra would lower the drawbridges to financial services for anyone with “a $40 smartphone and connectivity.”
The social media giant’s official also answered crypto community’s most relevant question “is Facebook Libra token decentralized ?”, by saying that Libra will gradually decentralize over time.
Marcus concluded, that Libra should not be associated only with Facebook. He stressed, that each of 28 founding members of the Libra Association will be responsible for overseeing the network and have the same amount of power over it.
Bank of Japan has concerns that Facebook Libra coin could bring risk to the financial system.
Japanese media has recently published a report from one of the Bank of Japan (BoJ) representatives. The report indicates that the financial institution of Japan has concerns that Facebook crypto will be tough to regulate and it could put the financial market in danger.
BoJ official, who decided to stay anonymous stated, Facebook “will move money into an absolutely virtual world, so it is completely different than other forms of digital payment.”
Japan’s central bank has joined the other regulators expressing concerns over the potential risks posed by Facebook Libra coin.
This week over 30 advocacy groups called on U.S. Congress to halt Facebook Libra project until the profound questions raised by the stablecoin project are addressed. Authorities of France and U.K have also raised concerns over the Libra project.
The Bank of Japan’s governor, Haruhiko Kuroda, expressed his intentions as well, to “keep a careful watch” on whether crypto could be adopted as a payment, and how it could impact existing financial and payment systems.
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