The co-creator of Libra, Facebook’s nascent cryptocurrency, took to Twitter on Monday to try and dispel some of the fears people have about the digital asset.
David Marcus, a former PayPal executive, noted that Libra would be tied to a set of fiat currencies, meaning it’s unlikely to be a threat to traditional financial systems.
“Recently there’s been a lot of talk about how Libra could threaten the sovereignty of Nations when it comes to money,” tweeted Marcus. “I wanted to take the opportunity to debunk that notion.
“Libra will be backed 1:1 by a basket of strong currencies. This means that for any unit of Libra to exist, there must be the equivalent value in its reserve. As such there’s no new money creation, which will strictly remain the province of sovereign Nations.”
As well as stating that Libra won’t be able to exist without fiat currencies, Marcus said that Facebook wants greater regulatory oversight of its cryptocurrency project.
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The cryptocurrency project has already attracted attention from policymakers and government bodies across the globe. Over the weekend, for instance, politicians in France and Germany said they would consider blocking access to Libra if it posed a threat to their financial sovereignty.
“We also believe strong regulatory oversight preventing the Libra Association from deviating from its full 1:1 backing commitment is desirable,” noted Marcus.
“We will continue to engage with Central Banks, Regulators, and lawmakers to ensure we address their concerns through Libra’s design and operations.”
Finishing off his flurry of tweets, Marcus also said that he wants the Libra Association – a group of 28 companies that have backed the digital asset – to take control of the cryptocurrency project once they have ratified a charter.
“I’m looking forward to the Libra Association taking on full leadership of the project soon after its charter has been ratified so I can focus on building [Libra wallet] Calibra,” said the Facebook executive.