Facebook plan to launch Libra next year and they have faced fierce opposition from the US, French and German government. At least now they have some positive news as the influential Coinbase Cheif Operating Officer Brian Armstrong backed the project saying “Libra has the Potential to Change the world”.
Amstrong was commenting on an article written by David Marcus one of the co-creators of Libra. which read:
“…building on top of existing rails and across disconnected payment networks won’t reduce cost, open up the market to more innovation, nor lower the barrier of access to modern financial services as much as building a new infrastructure with a very stable, high quality global medium of exchange supporting it,”
Amstrong agreed with the views of Marcus and said:
“Libra is one of several important crypto projects on the horizon with the potential to improve the world. Whether it works or not still remains to be seen, but I find the backlash to it a bit odd and misguided,“
Odd and misguided yes, but the backlash is probably due to the fact that all the naysayers feel threatened. ECB’s Coeure recently spoke about stablecoins and how they could disrupt the financial mechanism in relation to tax collection and bank deposits. There are many financial derivative products that do not impact the underlying but Libra has the ability to take business away from traditional finance and that is the main issue. Bank of England’s Carney is one central banker who thinks a project like Libra could dethrone the dollar as the world reserve currency. With Bitcoin having such a horrid time of late it may be too volatile but stablecoins may offer something more attractive.