Facebook Libra to launch in 2020 despite regulators’ pushback
David Marcus, head of Calibra at Facebook recently said that the company aims to launch Libra in 2020 despite regulators’ pushbacks.
On Sept 20 Swiss Newspaper NZZ interviewed David where he said that “in the intervening time, the team behind Libra would need to address all concerns adequately and to create a suitable regulatory environment.”
Addressing regulators concern on Facebook disrupting the global monetary system, he added:
“Each Libra is deposited one-to-one with traditional currencies and no new money is created. There is no impact on interest and yields. In this sense, the Libra reserve cannot disturb monetary policy either. In any case, it is unlikely that users will pay for an espresso […] with Libra in the future. Instead, they will use it where it offers benefits, such as international payments or for micro-payments”
“I see Libra facing greater user acceptance problems than regulatory ones”
David Marcus adds that the users might “would need some time to properly grasp what they can use Libra for. The network would likely see “considerable frictions” at its inception, due to the need for interested parties to undergo robust identification procedures.”