CEO of Circle, Jeremy Allaire discussed the current activity taking place within the crypto sphere, with news outlet, Bloomberg’s Joe Weisenthal and Romaine Bostick on Friday, July 5, 2019.
Some of the topics that the discussion was founded on include Facebook’s endeavor, Libra, how Libra is one of two different types of stablecoins and how Facebook’s move could potentially lead to the implementation of policies among others.
As reported, Allaire deems that Libra is different from, say USDCoin, a venture bringing together both Circle and Coinbase. This was made in reference to the fact that Libra appears to “run on kind of a closed-loop permission scheme,” whereas other existing stablecoins “run on the public internet.” USDCoin, in this case, would serve as the latter.
Given cryptocurrencies’exposure in today’s society, awareness is essential in helping to induce growth within the market. Allaire trusts that Facebook has had a “massive” influence on it. He also believes that Facebook could potentially help to push towards placing policies that strengthen the crypto market. He was referenced saying the following:
“There’s an opportunity to put in place policy that allows us to flourish on a massive scale in the same way that the internet flourished in the mid- to late-nineties and policy was really vital to enabling that.”
As for potential weaknesses Libra may have, back in June 2019, a blogpost by Circle shared potential drawbacks that may arise. One thing that has been expressed, especially if Libra is used for payment-related services, is Facebook’s previous “handling (or mishandling) of customer data.”
Since the Calibra wallet will be integrated with instant messaging apps like WhatsApp, consumer reactions to privacy of data might arise. Facebook and Calibra supposedly claim to keep financial data segregated from social data, however, regaining trust might be a tough one after the Cambridge Analytica Scandal.
Another weakness that Libra supposedly houses is the fact that it doesn’t serve as a cryptocurrency because, “it is not entirely borderless or neutral and is by no means decentralized or censorship-resistant.”