- Bitcoin not a Medium of Exchange – David Marcus
- Facebook’s Libra Faces Setback From Regulators
The head of Facebook’s Libra’s project David Marcus in a recent interview stated that he does not see Bitcoin as a form of currency, he stated that Bitcoin is just “digital gold.” He went thus: “It’s not a great medium of exchange because of its volatility.”
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The face of the Calibra digital wallet which is a Facebook subsidiary will issue a digital wallet for Libra. Marcus commented that he sees Bitcoin as digital gold because people can hold Bitcoin as an investment. But Bitcoin’s volatility means that the coin is not the best choice for people who wants to send money across borders, Marcus added. According to the project head, Libra will be bound to fiat currencies like the Euro and the U.S dollar, permitting it to stay stable.
Facebook CEO Mark Zuckerberg and project head Marcus have been in several meetings to see that the dream of Libra becomes a reality, the duo has met with U.S Senate and the House Financial Services Committee. So far the setbacks they are getting have not stopped them from trying to achieve their goal.
Facebook’s Libra Faces Setback From Regulators
Speaking on the difficulties they are having with regulatory bodies, Marcus admitted that they knew there would be some setback, he stated: “I think it was expected and for several reasons, he said. One is understanding that the way this is designed is not trivial. You need to invest a little time to really look into the separation between the Libra Association, which we don’t control anymore, Calibra, the wallet, which is a subsidiary of Facebook, and Facebook itself, and also the fact that this was designed more to operate as a payment system to enable people to have access to modern financial services and digital money, not really as a thing to take over the world.”
When asked what he thinks should be done differently, Marcus stated that he would emphasize the benefits of establishing a new setup to transfer money around the world for the people who needs it urgently. Buttressing his point, he stated that the idea of the creation of money encourages a lot of people to talk about it.
In the past few months, Facebook has been battling with the law in light of its interest in digital currency. Facebook’s Libra has formed a lot of apprehensions regarding issues like money laundering and user protection. The chair of the international regulator stated that an assessment of the digital currency exposed features on which existing security measures can apply. Meanwhile, those in Europe seemed to be livid by the idea of Libra currency and wants it permanently banned. The head of Hong Kong’s security regulation stated that there is an urgent need for understanding the rights and responsibilities issued to users.
Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.