Facebook decided to launch its digital currency in June, and this project was named as Libra. Since the announcement, the digital coin is facing backlash from different parts of the world as well as the governing systems. Facebook is among the major supporters of the project, and they have been facing a tough time as the regulators are questioning the purpose of the project launch.
Earlier, David Marcus came forward to give information about the project in a meeting that was held in the presence of the SEC, regulators, and major central banks from the world. Recently, the co-creator of Libra, Christian Catalini, came forward to give some insights about the project.
Facebook Libra money making ways
The co-creator of Libra informed about the working of the cryptocurrency, and it further clarified how the coin is expected to work. Catalini said that the platform would make revenue with the help of advertisements. He claimed that the company is planning to use a new business model, which is separate from the targeted advertising model that Facebook uses.
Libra will use the Calibra app for its storage and exchange the Libra coin with several third-party apps. The wallets have various features, terms of use, and more, which would require Calibra to keep its wallet service competitive when it comes to data privacy. But the platform is set up on hybrid private-public blockchain, making it accessible by only a few people to work on the security node.
Can we trust Libra claims?
Libra is backed by one of the largest corporations and the largest social network platform in the world. With such a user base, the platform has the potential to bring significant changes in the world economy. However, Facebook has a record of being notorious with the user data, so blindly trusting the claims would be a mistake, which brings us to the conclusions various banks and governments have reached.
Several European countries like France, Italy, and Germany have considered blocking Libra in Europe. German banks have expressed their concerns too, but they believe that the project will be short-lived, and setting up restrictions for the platform is a better option as compared to banning the digital currency. The pressure from the countries and regulators lead to various founding members leaving the project.
Libra is still positive about their approval and is willing to work with the regulators for the launching of the platform. As they mentioned in an earlier tweet, answering the questions raised by the industry.
We've said from the beginning that Libra shouldn’t and wouldn’t launch without the appropriate regulatory oversight and addressing legitimate concerns. Every time someone agrees with us, it doesn’t constitute a “blow” or “setback.” Innovation and regulation can live in harmony.
— Libra (@Libra_) October 15, 2019
