Facebook Libra and Calibra wallet that goes with it have undoubtedly faced more opposition and controversy than any other stable coin and that too before it is even launched.
From the United States government to international banking organizations and the G-7 countries have mostly been critical of the stable coin being launched by Facebook Inc, albeit in collaboration with ninety-nine other investors.
Facebook Libra and Calibra connection
For those still unaware Facebook Libra and Calibra are both parts of the same project. Where Libra is the blockchain that would gear the Libra stablecoin Calibra would be the wallet that would come with the stablecoin as the norm demands.
Facebook Libra and Calibra connection, however, is deeper than a regular stablecoin and wallet. A Cindicator report on Facebook Libra states that where the Libra blockchain is not completely decentralized, it has some level of decentralization since the hundred (100) investing companies get one vote each.
On the other hand, Calibra is controlled by Facebook; therefore, it is neither decentralized nor makes people feel any safer about their wallets.
Similarly, where the blockchain and the hundred (100) investing companies would be aware of the real-world identities of the users, Calibra would have all the real-world identities and even more, their personal information since the entity handling is Facebook.
This posses a massive manipulation risk that leads the U.S public representatives to compare Facebook with the 9/11 catastrophe. What doesn’t help is the fact that Calibra has the technical capability to manipulate users, while the blockchain obviously is not technically capable.
The privacy issue is further reinforced by the know-your-customer (KYC) rules. Where Libra blockchain obviously has no KYC obligation, Calibra has a mandatory KYC policy. However, there is some minor reconciliation for those who still want to try Libra.
Facebook Libra has full legal control over the blockchain; therefore, any Libra related activity can be turned around with enforced legal action. Calibra, on the other hand, has no such powers over Libra. Where Calibra can freeze or unfreeze user assets, it cannot make Libra blockchain do anything at whim.
Whether or not Facebook Libra and Calibra are playing out a good cop, bad cop strategy is upon the users to decide, and for that, the project has a long way to go before launch.