Facebook’s Project Libra may seem extravagant from the outside but essentially is a restrictive environment, says Marcus Treacher, a senior vice president in the American technology firm and blockchain start-up, Ripple.
Project Libra involves a highly-anticipated stablecoin backed by several government currencies to establish an extensive payments network across the globe. Ever since its launch, it has either been touted as the next-big-thing in the global financial markets or digital currency with a catastrophic ending.
Project Libra is a “walled garden”
In his interview with CNBC on Sep 27, Treacher highlighted a significant flaw in the project, claiming it to be a closed system. Comparing it with the technology giant Apple, who largely controls its apps and software market, Treacher states that Facebook, too, would be much the same as Apple.
Facebook’s beloved token is backed by the likes of Paypal, Uber, and Visa. Besides, the Switzerland-based organizations recently released a list of currencies that would contribute to a digital vault, named Libra reserve.
Commenting on the prestigious Libra consortium and other prominent companies wishing to lend their hands to launch this widely discussed project, Treacher mentioned that Libra is a heavily guarded project that only allows access to the ones who are privy.
As opposed to Libra, Ripple is a network with no perimeters. Its interface and the products are available to anyone who wishes to use it, he contends.
Project Libra’s unforeseeable fate
However, despite condemning the project for being shielded, Treacher believes that it may not necessarily be a bad thing. A silicon valley giant entering the digital assets space could really propel the sorely needed adoption, he concluded resting his argument.
Whatever be the outcome of the long-overdue project launch, which is essentially as unpredictable as the weather, it has not deterred countries and government officials from voicing their opinions. Earlier this month, Germany and France would rather hope for a digital euro than backing a Libra-like currency.
An ex-United States Federal Reserve Official, Simon Potter, argued last week that there is no escaping the US dollar dominance and that it is vital for economic stability. He went on to take a jab at Mark Carney, Governor of the Bank of England, who endorsed the concept of alternative reserve currency to replace the US dollar, saying that he is not considering long-term implications.