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Ethereum Co-Founder Explains the Connection Between Facebook and Libra

Cryptocurrency

Joseph Lubin- Co-Founder of Ethereum stated that Facebook should not lead the Libra cryptocurrency project.

In an interview with CNBC’s Squawk Box program, Lubin said that with all the identity concerns, Facebook should not be leading the Libra project. He pointed out the recent issue of how the social media giant infamously used its users’ personal information without their permission and acknowledged that stablecoins are well off with cross-border commerce and better access to price stability.

Joseph Lubin said,

“We’ll see many Libra-like projects going forward with different kinds of price-stable currencies offered.”

Libra had a grand introduction with a list of top-class corporate companies. Within a few months, Libra had been treated with many criticisms from the regulators.

Will Libra Manage to Get Regulatory Approval?

Facebook will not have sole control over Libra but will be governed by a panel of back-ups. On 15th October, Facebook, in its meet at Geneva, announced its 21 founding members. Some of the members include Uber, Lyft, and Spotify. The board of directors will consist of David Marcus- Facebook’s leader for the project, and representatives from Andreessen Horowitz, Xapo Holdings, PayU, and Kiva Micro funds. Later, in October, Libra suffered a major setback when Visa, Mastercard, Stripe and PayPal decided to withdraw from the project.

In late October, the House Financial Services Committee suggested that project Libra be ceased till it addresses all its faults and loopholes. Facebook CEO- Mark Zuckerberg replied that the company will not be a part of launching the Libra payments system until it gets the regulatory approval. In the session, since Libra Association decided to continue without regulatory approval, Zuckerberg said “Facebook would be forced to leave” the project.

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