David Marcus tries to chase away fears of Libra threat to state monetary sovereignty

Posted 17 September, 2019

David Marcus, chief of Facebook's blockchain arm made a statement on the Twitter commenting on the concerns of the officials that are going the round of the market. Authorities fear that the Libra project can be a threat to state sovereignty. 

He said in the message:

"Recently there's been a lot of talk about how Libra could threaten the sovereignty of Nations when it comes to money. I wanted to take the opportunity to debunk that notion"

According to Marcus, the announced cryptocurrency project is designed as an advanced variant of payment network based on existing currencies. In particular, the coin will be "1:1 backed by a basket of strong currencies", so every coin must have the equivalent in its reserve.

As a result, no new money supply will not be issued, as this is still the right of sovereign nations.

David Marcus also added that tight control from the global regulators will not let the Association "from deviating from its full 1:1 backing commitment".

Facebook plans to keep cooperating with central banks, officials and regulatory bodies striving to dispell all the questions and doubts regarding the Libra operations.

Notably, he also expects the full project leadership to be passed to the Libra Association once the latter ratifies its charter. This will enable Marcus to focus on the development of Facebook Calibra wallet.

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