Facebook's David Marcus Responds to Critics Over Libra 'Threat'

The head of Facebook's Calibra has spoken out to "debunk" allegations that the Libra project poses a threat to nations' fiscal sovereignty.

AccessTimeIconSep 16, 2019 at 1:04 p.m. UTC
Updated Sep 13, 2021 at 11:27 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The head of Facebook's Calibra – the entity created by Facebook to provide financial services including a digital wallet for the planned Libra cryptocurrency – has spoken out in response to claims from authorities that the project poses a threat to nations' "monetary sovereignty."

In a Twitter thread on Monday, David Marcus, who co-created Libra, said he wanted to "debunk" that notion – one most notably promoted by France's Economy and Finance Minister, Bruno Le Maire.

Le Maire said last Thursday that, with Libra, "The monetary sovereignty of states is under states is under threat,” and further threatened to block the project's development in the EU.

Marcus said that Libra will be "backed 1:1 by a basket of strong currencies. This means that for any unit of Libra to exist, there must be the equivalent value in its reserve." As such, Libra will not be creating new money. That function will "strictly remain the province of sovereign nations," he said.

The Calibra chief further clarified that Libra is being built to be a "better" payment network utilizing national currencies, and "delivering meaningful value to consumers all around the world."

Marcus welcomed the attention from regulators, however, saying:

"We believe strong regulatory oversight preventing the Libra Association from deviating from its full 1:1 backing commitment is desirable."

His comments come as a group of 26 central banks – including the European Central Bank, the U.S. Federal Reserve and the Bank of England – meets in Switzerland to grill the Libra Association over the scope and design of the project.

In the thread, Marcus also pledged to continue working with "central banks, regulators, and lawmakers to ensure we address their concerns through Libra's design and operations."

David Marcus image via CoinDesk archives

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.