Since the start of the Bitcoin revolution, there have been thousands of blockchain projects. Facebook has joined the bandwagon and has started working on its cryptocurrency project.
The release of Facebook’s Libra project’s whitepaper in June has gotten several reactions from both regulators and crypto investors alike, with financial regulators seriously kicking against it while the latter believes the project is a welcome development.
In an interview anchored by popular CNN presenter, Julia Chatterley today, Libra’s co-founder and chief economist of Calibra Wallet Christian Catalini, tries to clear the air on several misconceptions held about the Libra project since the release of its whitepaper, while discussing other issues related to the project.
— Julia Chatterley (@jchatterleyCNN) November 25, 2019
Firstly, Catalini clearly stated that the Libra project is only a payment network that would facilitate frictionless, faster, and cheaper cross-border transactions while providing support for several services, including the Calibra wallet.
He further explained that the rationale behind their move is to provide financial service for the unbanked and underbanked global citizens while adding that the increased transaction fee associated with the traditional financial system was also a contributing factor.
Libra Association Not Bothered about Persistent Regulatory Scrutiny
Catalini was quizzed about whether the Libra association is disturbed about the consistent regulatory scrutiny that the project has received so far. He, however, stated that the association expected widespread criticism from regulators.
Even though he believes the scrutiny is relatively intense because of Facebook’s involvement in the project, he tried to stay positive, while saying:
Regulator’s scrutiny [for the project] is productive. It helps us to think through about the challenges the project would face if successful in the future.
Libra Project Will Not Pose A Threat to Central Banks Issued Fiat Currencies
Catalini was further quizzed on whether Facebook’s entrance into the crypto industry would pose a threat to major fiat currencies such as USD, EUR, and GBP, considering the popular social media large user base.
He noted that contrary to popular opinions, the planned currency is a payment network and would only be integrated with these fiats to facilitate payment and not compete with them.
Earlier this month, Coinfomania reported that the European Union (EU) is still adamant considering its stance for the project, as some members of the EU critically examined the negative implications of crypto projects like Libra on the global financial system.