David Marcus: regulators do not need to worry so much about Libra from Facebook

The head of the blockchain division of Facebook, David Marcus, attempted to allay the concerns of regulators and legislators regarding the implications of the launch of the Libra project.

In a note on Facebook, Markus touched on a number of Libra-related questions that, in his opinion, cause misunderstandings. Also, the representative of the largest social network confirmed that this month he will speak before the Senate Banking Committee and the Financial Services Committee of the US House of Representatives.

First of all, Marcus touched upon the theme of mistrust towards Facebook in connection with the scandal with the Cambridge Analytica in 2016.

“The most important thing is that you don’t need to trust Facebook to benefit from Libra ,” writes the top manager of the largest social network. – Facebook also will not have a special responsibility for the Libra Network. However, we hope that people will warmly accept Calibra wallet "

According to Marcus, the new project will greatly benefit people who do not have access to traditional financial services. He stressed that Libra and the “$ 40 Smartphone” will easily solve this problem.

The business model of Libra will depend on the operations carried out in the ecosystem of applications of this project, which can increase the effectiveness of advertising and motivate people and organizations to purchase various services of Facebook.

The whitepaper says that at first Libra will be controlled by a small number of organizations. However, over time, the project will become more decentralized and, according to Marcus, Facebook will have as many powers as other members of the association.

“From the news headlines, you might get the impression that Libra is only linked to Facebook, but it’s not ,” says David Marcus. “ I would say that 100 organizations distributed geographically and by industry will provide a significant degree of decentralization.”

It should be noted that the Libra project causes considerable concern among regulators and legislators of various countries. In particular, officials do not rule out that a new global payment instrument may reduce the effectiveness of the monetary policy of central banks and, thus, pose a threat to national currencies and even the global financial system as a whole.

So, almost immediately after the announcement of the launch of Libra, Member of the US House of Representatives Maxine Waters called on the largest social network to stop working on the Libra project. Also recall, the other day a letter with a similar appeal was immediately signed by five US legislators .

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