In a recent interview with Buzzfeed, the Founder of Twitter and Square Inc. noted that Facebook was “completely incorrect” to label Libra as cryptocurrency.
Joseph Lubin, the co-founder of Ethereum, also criticized Mark Zuckerberg on his testimony before the US Senate on Tuesday. He reiterates the argument that Facebook’s aim to launch Libra is to gain financial supremacy by its Calibra Wallet. He tweeted,
Mark, instead of co-opting decentralized technology and dumbing it down, why not work on contributing to something where thousands of people are already making progress?
Crypto-Twitter has also criticized Zuckerberg for trying to serve the interest of various stakeholders. This includes the US Government, users, crypto-enthusiasts, and other governments as well. By introducing a basket of assets, Facebook’s ambitions are beyond far-reaching.
Moreover, in all of this, introducing a blockchain simply does not make a cryptocurrency. And, financial freedom cannot be achieved by creating a diversified portfolio. Decentralized control forms a considerable part of what cryptocurrencies like Bitcoin and Ethereum are selling.
Will the Chinese Threat Work for Facebook?
On the regulatory front, one thing that is working in favor of Facebook is the threat of dominance of the Chinese Digital Currency. However, the government seems to be taking a structured approach in regulating stablecoins as ETFs.
Dovey Wan, a crypto-analyst, also criticized Zuckerberg for playing “the China Threat card to FOMO the US gov.”
Moreover, there are already umteen USD backed stablecoins in the market,