Libra is being backed up by several big industries, and Facebook Inc. is once again coming up to defend it. This time the governments are worried that the launch of Libra can replace the currencies like the U.S. dollar and Euro and the central bank’s control over the creation of money will be under threat.
David Marcus is leading the project Libra, and he posted a series of tweets the same day when the Libra Association was meeting up with regulators in Switzerland. He cleared out the misunderstanding by telling people how the creation of Libra is not the equivalent of printing U.S. dollars or minting Euros, and its existence won’t create new value.
Ever since the announcement of its launch, Libra has seen severe push back from the regulators as their biggest concern is how smugglers, drug dealers, and terrorists might use the digital currency for their benefit. Libra’s association with Facebook has been a significant drawback for them as Facebook is known for their mishandling and foul use of the user data in the past leaves people wondering if it can be trusted again with personal information.
David further explained how any unit of Libra would be backed up by another unit of the currency that is present in reserve. He added that there are no plans of money creation by the social giants and that department will strictly remain with the sovereign nations.
He ended his thread of Tweets by expecting the Libra Association to take full control of the project so that he can focus on the development of Calibra, the digital wallet for Libra.