Facebook Executive Claims Libra Won’t Spread Like A ‘Social Network’

On November 5, 2019, Kevin Weil, vice president of product at Facebook’s Calibra digital wallet unit, said the tech giant’s proposed Libra cryptocurrency won’t go viral like a social network platform and will take decades to roll out.

Addressing an audience at the Web Summit technology conference in Lisbon, Portugal, Weil explained that the Libra project is going to be the work not of years but decades, and it is worth making.

Facebook has come under intense regulatory pressure ever since it first announced its plans for a digital currency earlier in the year.

The Libra Association, a Switzerland-based consortium overseeing the project, lost several key initial backers including Mastercard, Paypal and Visa last month due to hostility from congress.

However, Weil seemed optimistic about the interest among other corporations in joining Libra. He said:

“Today, we have 21 fantastic committed organizations that are members of the Libra Association; a bunch more that are looking to be involved. So expect that number to continue to grow.”

Libra’s value would be tied to a basket of national currencies and debt to maintain a stable value and eliminate the volatility seen in cryptocurrencies like bitcoin.

Libra to Be Used Primarily for Remittances

Facebook’s primary use case for Libra would be for remittances, where people send money across borders.

Weil said that the cryptocurrency would address the agony presently involved in sending money abroad, claiming the average fee for remittances comes in at about 7% of the total transaction amount.

Facebook Social Network Shouldn’t Drive Libra Project

One of the critical apprehensions amongst some political and regulatory figures has been the fact that Facebook has so far been the entity leading the digital currency initiative.

Joseph Lubin, a co-founder of Ethereum, believes that Facebook should not be spearheading the Libra cryptocurrency project.

Speaking on CNBC’s “Squawk Box” on November 5, Lubin said:

“I don’t believe that Facebook … with the concerns that we have with respect to trust and personal identity on Facebook, should be driving that project.”

Lubin’s remarks came despite Zuckerberg’s reassurance that Facebook ‘would be forced to leave’ the Libra Association if it moves forward before U.S regulators approve.