Libra is yet to launch and has already created a ruckus in the financial and cryptocurrency communities alike. David Marcus, the head of Calibra, offered some insight as to how Facebook’s cryptocurrency will continue from an operational standpoint. On the sidelines, ZenGo announced the launch of their non-custodial Libra wallet in a blog post, July 3, 2019.
Clearing the Noise
It’s only been two weeks since the announcement of Libra, and controversy has plagued the Internet as to what the big picture is going to look like. David Marcus believes that despite the detailed reception, there are still a few misunderstandings about Libra.
For starters, Calibra is a subsidiary of Facebook but is only one of 28 different organizations that are forming a part of Libra. The decision to announce Libra early was deliberately made to allow regulators to digest the news and hash out doubts as quickly as possible. Marcus also wants to make it clear that while Libra may not be as open as Bitcoin, it is still open source and anyone can build on or help grow the network.
The choice to begin as a permissioned ledger was made to please regulators and allow them to get a feel for the ecosystem. Using trusted entities and gaining regulatory approval is a cornerstone to achieving a strong foundation for Libra’s growth.
Finally, a key point put forth was addressing the misunderstandings of financial inclusion. The current system charges users exorbitant fees if their balance falls below a certain level, thus removing the incentive for using a banking service.
By lowering fees and abolishing a minimum balance, Facebook believes they are primed to tackle financial inclusion in a big way.