The head of Calibra – Facebook’s sister firm working on the upcoming Libra stablecoin – has recently spoken out in regards to claims from regulators that the project poses a threat to nations “monetary sovereignty.”
The co-creator of Libra, David Marcus has said he wants to prove such a notion wrong.
Promoted by France’s Economy and Finance Minister Bruno Le Maire last week, he said that with Libra “the monetary sovereignty of states is under states is under threat,” and further added to block the project’s development in the EU.
Marcus said that Libra will be backed “1:1 by a basket of strong currencies. This means that for any unit of Libra to exist, there must be the equivalent value in its reserve.” with this, Libra won’t be developing new money. That function will mainly “remain the province of sovereign nations,” he said.
Marcus went on from this and added that Libra is being built to be a better payment utilising national currencies and “delivering meaningful value to consumers all around the world.”
But it seems that the Libra chief is happy to see the attention from regulators.
“We believe strong regulatory oversight preventing the Libra Association from deviating from its full 1:1 backing commitment is desirable.“
Nw, Libra representatives are set to meet other heads from 26 central banks across the world in what is expected to be a pretty harsh grilling. We will have more information on the meeting tomorrow to know what went on but as we say, it’s expected to be a bit of boxing match, with 6 fighters against one…
The thread saw Marcus say that he would continue to work with “central banks, regulators, and lawmakers to ensure we address their concerns through Libra’s design and operations.”
It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!