David Marcus, the head of the blockchain at Facebook’s Libra project, plans to see the US Congress in order to demonstrate that Libra stablecoin is going to be more decentralized than is expected of it.
The launch of Facebook’s Libra created huge controversy in both the crypto ecosystem as well as the internet across the globe.
This move by Facebook established a secure reputation of cryptocurrencies in modern finance. Previously people called it a Ponzi scheme but seeing as one of Silicon Valley’s most notable names is investing in it, it is sure to improve its reputation and people’s trust in the technology.
However, as people in the crypto sphere observed the cryptos white paper, they noticed that the crypto is not decentralized and therefore not on the blockchain network.
David Marcus, the man steering the project said that the plan is to decentralize the technology once it is online while making sure that the company is able to navigate regulatory hurdles.
The crypto is going to be pegged with several national currencies, and that is sure to cause legal problems. Although the crypto is advertised to move money across borders, it is hard to see how t will manage to do so.
Marcus explained this in a new blog post stating that though the network may not be decentralized initially, the network will not need users to become members in order to access it. He then added that the crypto would be moving towards decentralization once it is online.
He also stated that many more institutions will join Facebook by the time it is launched and that Facebook will not receive any special permissions on the network just like in a blockchain network.
He also said that people would be able to use multiple wallets with smooth liquidity among them on the network. This will allow dealing with regulations among different regions and governments.
He then added that as this is a new idea, it may take some time before it blossoms but it will definitely be needed in the future. Moreover, he said that it might be present many systematic problems and issues if it is not done right; therefore, it is necessary to proceed with utmost caution.