Thursday, 21 November 2019

Marcus says Libra won’t be controlled by a single company

WASHINGTON: Facebook executive David Marcus tried to calm the fears of officials threatening to block its proposed digital currency, saying Libra won’t be controlled by a single company.

The head of Facebook’s Libra currency project sought to address the main issue raised by France’s Economy Minister Bruno Le Maire: the potential for a company to have the power to undermine a government’s control of its currency.

Marcus said it has been “very clear to us from the very beginning that a payment networks such as the Libra network shouldn’t be controlled by one company.”

Speaking at a forum, hosted by the Group of 30, he repeated the company’s commitment to work with regulators to address their concerns.

He added that the Libra Association — comprised of 21 companies — will “welcome competition to benefit local access and strive for the lowest cost possible for consumers.”

But, he cautioned, “the status quo is not an option any longer.”

Central banks and government finance officials have long worried about the challenges posed by digital currencies, and the risk they can be used for money laundering and financing terrorism.

Libra is different from other digital currencies like Bitcoin because it would be a “stablecoin” tied to national currencies.

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