Facebook to be regulatory compliant while gradually establishing decentralization

  • 04 July 2019, Thursday, 07:00

The central focus of all squabbles surrounding the stablecoin project Libra was the subject of decentralization. Titled “Libra, 2 weeks in“, David Marcus, the head of Calibra clarified a few issues that have been brought up. He addressed some serious questions prompted by the mainstream media, who according to Marcus, tied the upcoming venture only to Facebook, while the other 24 industry giants which also happen to be the founding members of the project along with social media giant were not accentuated.

Referring to the upcoming rollout being backed by a good deal of industry players, Marcus believed that a network being developed by “one hundred geographically distributed, industry-diverse organizations is quite decentralized” at least in the initial days if not in the “equilibrium”.

A long-debated subject for Bitcoin and other PoW-based cryptocurrencies was the dominance of mining pools on the network and concerns which were seldom expressed by the Bitcoin community. Taking a jibe at this bone of contention, Marcus asserted that the power concentration in the hands of those running the mining pools “is often overlooked”.

He also acknowledged the fact that Libra is “not as open as Bitcoin”, and stated that the blockchain was designed to be “open” requiring no users to be a member of the network for the purpose of “accessing the blockchain and developing services like wallets or merchant acceptance”. He further said that the team was committed to gradually undergoing a transition to a full-fledged “permission-less state” in the coming years.,

“But it was important to start with trusted entities that could operate in a regulated environment and with the operational expertise required to ensure the integrity of the network in its fundamental stage.”

Another critical issue that Marcus emphasized on was that the ambitious project would enable people to securely store their assets and access the world economy and a whole range of financial services, all at low transaction fees even with “a $40 smartphone and connectivity”. A key takeaway from this would be that the project would also target a wider set of demographics which means the unbanked populace.

The best way to eliminate “unwanted risks” from the regulators is to commit to a collaborative process with the regulators, central banks and lawmakers. Marcus revealed that a digital network, which has the ability to process a massive volume of transfer of funds, and is compliant with the KYC norms while also accommodating the regulators to conduct on-chain activity analysis, is the core of the Libra blockchain.

Source: ambcrypto.com