The cryptocurrency market is split after the reveal of Facebook’s cryptocurrency, Libra. This is mainly due to some proponents lending support to the cryptocurrency, while others are of the opinion that the entry of the Mark Zuckerberg-led company into the world of digital assets will be problematic.
One cryptocurrency veteran who shares the latter opinion is Mihai Alise, Co-founder of Ethereum. Alise claimed that Facebook’s idea of owning the entity that controls Libra defeats the entire purpose of a decentralized network and the inherent property of privacy. The Co-founder added,
“This has implications on so many areas, from the economic to the political to the technological to surveillance and data privacy. It’s a very well-oiled machine of surveillance. It is actively manipulating the behavior of people on a global scale.”
Another problem brought to light by Alise was about the sheer number of partnerships on Facebook’s roster. According to the man responsible for recruiting Vitalik Buterin to Bitcoin Magazine, in the future if a user ticked off any of the partner organizations, then his or her transactions might be affected.
Alise was not the only cryptocurrency proponent against the social media giant’s foray into crypto as concerns about the digital asset were also raised by Federal Reserve Chair Jerome Powell. At a recent Congressional hearing, he had said,
“Libra raises serious concerns regarding privacy, money laundering, consumer protection, and financial stability. These are concerns that should be thoroughly and publicly addressed before proceeding.”
The Fed has made it clear that unless the aforementioned concerns are not addressed, the ‘project cannot move forward.’
Facebook and Calibra, Libra’s parent company however, have taken the stance that Libra is most definitely not a centralized cryptocurrency, but rather an initiative to put digital assets on the map. This was voiced recently by Christina Smedley, Head of Marketing and Blockchain at Facebook, who said that the community does not need to worry about Facebook taking control of their investments. Touching on the entire issue of multiple partner companies, Smedley said,
“The association is going to be responsible for taking the Libra network to a permissionless state, and that would begin within 5 years. Facebook will just be one organization in the association.”