Officials answer questions about the virtual currency 'Libra' announced by Facebook
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Facebook announced in June 2019 a new virtual currency ' Libra ' that is available to people around the world. While many people focus on Libra, there are also voices of various concerns and questions. In response, David Marcus, CEO of Facebook subsidiary Calibra , which develops and provides Libra, responds.
Libra, 2 weeks in | Facebook
https://www.facebook.com/notes/david-marcus/libra-2-weeks-in/10158616513819148/
About two weeks after Libra was announced, Marcus commented that many were encouraged by Libra's vision and approach. Having made a public announcement about Libra extensively before the service started, it was said that it was a prudent decision made to 'incentivize open discussion.' By releasing high-quality exchange media in the form of virtual currency and launching various support infrastructures, Marcus claims that it can never be done in the dark.
As a result, Libra received many questions and questions from many people, which led to discussions and the initial prospects were successful. And two weeks after the announcement, Marcus decided to answer the questions of the people.
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◆ 1: Isn't it possible to say that Libra has low dispersity and is a block chain?
Bitcoin is famous as a virtual currency that uses blockchain technology, and shares transaction records among a large number of unspecified users involved in Bitcoin transactions and processing. On the other hand, the processing node in Libra is ' The Libra Association ', which is formed by large companies with many names such as MasterCard, Visa, Uber, Lyft, eBay, Spotify, etc. Some say that 'Libra is not a blockchain virtual currency.'
Marcus, on the other hand, admits that it was important to start with reliable nodes in the first stage, while admitting that substitutability of nodes is necessary as a basic principle of blockchain. Eventually the number of members of the Libra Association is expected to be around 100, and in addition to the geographical and industry wide dispersion as the number of joining members increases, the Libra Association needs to make efforts to make it more decentralized Said there is.
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◆ 2: Why is there no charter at the Libra Association?
At the time of writing, there was no such thing as a charter or declaration published by members of the Libra Association. In this regard, Marcus admitted that Facebook could have prepared a charter of the Libra Association in advance and asked that joining members ratify it. On the other hand, the Libra Association charter at the time of writing has the idea that all members should participate in important decisions as the spirit of the Libra Association and limit the power of a single organization including Facebook. It does not exist.
◆ 3: Can Libra work on 'Financial Inclusion'?
Financial Inclusion means solving the problem of access to basic financial services in developing countries, etc., and making financial services available to everyone. Calibra and Facebook often refer to financial inclusion in connection with the establishment of Libra, and widely make it possible for people around the world to use financial services, but some voices question whether Libra can really solve financial inclusion. It looks like it is.
Marcus pointed out that one of Libra's misconceptions about financial inclusion is that 'people in developing countries can not deposit money with banks because they have no money to deposit in the first place.' Certainly Libra can not increase the money held by people, but as a matter of banking services, it is expensive to open an account, or unable to withdraw money that can be called a fraction if the balance falls below a certain amount. That there is a point.
'People who don't have money and can't open a bank account don't say that modern financial services don't make sense, they just say they can't afford access to the system,' said Marcus. Insisting that it is significant to provide financial services that can be used at low cost. Libra succeeds as anyone with $ 40 smart phone and internet connectivity can securely manage their assets and can do financial transactions at a much lower cost than banks. He said that change would come to many people in need of financial services.
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◆ 4: Do you have plans to relate to regulators or law enforcement agencies?
The existing financial system has fought against various types of issues, such as money laundering, terrorist financing and fraudulent behavior. Calibra will also be openly involved with all stakeholders, including regulators and law enforcement agencies, to enhance its ability to oversee financial law enforcement and law enforcement using Libra.
◆ 5: Can Facebook be trusted as a financial services operator?
In recent years, Facebook has been hit by scandals such as user data leaks , and events that have lost trust have continued. Although there are many who feel uneasy about such Facebook's being involved in financial services, Marcus points out that 'Facebook does not manage networks and reserves related to Libra'. Facebook is just a member of the Libra association, whose power is equivalent to more than 100 members of the association.
Also, although Calibra is a subsidiary of Facebook, Facebook can not see financial data of users owned by Calibra. In addition, there are various types of software for managing Libra, and it is not necessary for users to trust Facebook in order to benefit from Libra such as trading and management.
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◆ 6: Why did Facebook start to develop and offer Libra?
Facebook provides free platforms and communication tools to bring people around the world closer together, and many people send texts, photos and movies. As the next phase, Facebook has a vision to make it easy for users to exchange the economic value, and as a result of trying to provide financial services the same kind of assistance as done for communication, Libra development and provision Marcus argues that he has taken off.
On the other hand, the big difference from Facebook is that Facebook does not manage Libra's network and currency. So how does Facebook benefit from Libra? We expect it to earn related apps from the success of Libra, and to increase the profit from advertising, which is the pillar of Facebook's earnings by increasing commerce. And.
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Marcus said he is looking forward to engaging with various communities and stakeholders, and he hopes for much feedback.
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