By Facebook’s Libra coin has been on the news lately; there have been a lot of speculations regarding it as well. Government bodies are already looking into it and some of them have even shown them the red flag. Addressing the various trust concerns about this new cryptocurrency, David Marcus, the head of Calibra at Facebook took to a post on the social network.
Marcus highlighted the fact that Libra users will not have to put their faith in Facebook. He mentioned that Facebook is a member of the Libra network, but they are giving up control of the network. He says:
“Facebook will not control the network, the currency, or the reserve backing it. Facebook will only be one among over a hundred members of the Libra Association by launch. We will not have any special rights or privileges. Facebook created a subsidiary — Calibra — that will operate a wallet service on top of the Libra Network, and while Facebook, Inc. owns and controls Calibra, it won’t see financial data from Calibra.”
While Facebook does own the crypto wallet company Calibra as its subsidiary, it won’t have any access to the financial data of Libra users. He said that the users are free to use any other wallets available to store and make transactions with Libra. ZenGo is one of the non-custodial wallets available out there which has provided us with a proof-of-concept demonstration for Libra support. The wallet sports an ability which allows users to not have to store private keys. The application uses a key-like solution which is distributed among multiple parties instead of existing as a single string of characters.
Marcus further states that:
“You won’t have to trust Facebook to get the benefit of Libra. And Facebook won’t have any special responsibility over the Libra Network. But we hope that people will respond favorably to the Calibra wallet. We’ve been clear about our approach to financial data separation and we will live up to our commitments and work hard to deliver real utility.”
Polychain CEO Carlson-Wee talked about this at the Consensus 2019 blockchain conference in May, that:
“I think that the strategic move for Facebook would actually be to build public infrastructure. And that public infrastructure could be incorporated onto all the Facebook platforms, which of course are proprietary. But that public infrastructure, if they don’t try to own it, I think that’s where they will have the most success.”
This post came right after the United States Congress requested that Facebook pause further development of Libra until it can be further examined. A hearing is scheduled for the matter in the Senate and House of Representatives and is scheduled for July 16 and July 17.
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