The news coverage around Libra, since the day it was announced, has mostly been about the negative comments made on it. Ethereum’s Co-founder Joseph Lubin has now expressed his views about the project in a recent interview with BLOCKTV.
While mentioning that countries like Germany, France, and the United States will move together to stop Libra from being launched, he said that the project’s “greatest asset is its greatest liability.” He also shared his idea about allowing Libra to run smoothly by mentioning that even though Facebook is totally involved with the project, at one stage, social media platform should back out so that Libra can run independently,
“It will be outstanding for our ecosystem. It’ll draw a lot of attention and a lot of users, but it’ll be really bad for humanity,” he said while commenting on the project. He also added that Facebook will use the “deep portfolios” it has of its user base and “marry” it with the financial history.
In an earlier article, Lubin had mentioned Libra as “a centralized wolf in a decentralized sheep’s clothing.” He further wrote that,” We are also all increasingly aware of how much money Facebook makes from our data. What happens when you wrap your personal finances up in this, too? That our digital identity will never merge with Libra’s financial data is a hard perception to shake.”
Germany has now become the second government in Europe to openly express its disapproval about Libra. Last week, France said it could not authorize the development of Libra on European soil with finance minister Bruno Le Maire calling it an assault on sovereignty and a risk to financial stability. Both the nations have expressed their own plans to create their national cryptocurrency.
Charles Hoskinson, founder of the Cardano blockchain, and co-founder of Ethereum has stated in an interview that. “I don’t think there’s any unity in Europe on cryptocurrency policy. Europe is not a hegemony, where there’s just one universal voice. It’s rather a collection of different impartial interests, and sometimes they steer in one direction, sometimes in another.”
If Libra takes off successfully, it would have a bigger potential user base than the combined populations of China, the U.S. and the EU. Many fear that such a powerful cryptocurrency will have a major effect on issues like the enforcing of economic sanctions or regulation of global trade, as well as on central banks’ ability to respond to crises or recessions.
Given Facebook’s terrible track record of data and privacy leaks, it is no surprise that financial regulators and governments are finding it hard to swallow the idea of Libra.