David Marcus, known as the head of Calibra, the company in charge of Facebook’s Libra stablecoin, has recently decided to respond to the prominent concerns that Libra could affect the sovereignty of national fiat currencies.
According to him, this is a myth that has been promoted by some important people such as the economy minister of France, Bruno Le Maire. The French minister affirmed that the sovereignty of the states was being threatened by something such as Libra.
Marcus has affirmed that it does not make sense to believe this because Libra will be, in fact, backed by other tokens. In order for it to have any real value, the assets that underly the token will also need to have value as well. If the national fiat currencies lose their value, so will Libra.
The goal of Facebook with Libra, Marcus claimed, was only to offer a great way of paying others and delivering meaningful work. Because of this, it will not “create money”, only provide people with a payment network that basically uses the old version of money as an underlying asset.
Marcus has affirmed, however, that all attention from regulators is desirable. According to him, this kind of oversight will help to prevent the Libra Association from moving away from its ideals.
Now, a group of central banks from 26 countries is united in order to visit the headquarters of the Libra Association to grill the creators of the token about how the project can affect their own national money. Marcus has promised to work closely with national regulators and central banks to make Libra as compliant as possible.