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Edited by qqqpeter at 2019-7-5 14:37

Blocktempo.com reported that David Marcus, head of Facebook's subsidiary Calibra, has published an article in response to current questions about Libra.

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Facebook published the white paper "Libra" two weeks ago and was immediately questioned by multinational regulators. A few days ago, the US House of Representatives Financial Committee officially sent a letter requesting Facebook to suspend the development of Libra's plan. The letter mentions that "if Libra's products and services are not fully regulated, it is likely to jeopardize the stability of the US and global financial systems."

The Financial Commission mentioned in its letter that the Calibra wallet would be harmed and endangered the safety of the people,

Hundreds of trillions of assets will be deposited in unregulated wallets, which will be the target of hackers. For example, in the first three quarters of 2018, cryptocurrency exchanges were nearly $1 billion in assets. And those unregulated exchanges can be a tool for crime and money laundering.

In addition, the Financial Commission is concerned that Facebook has not maintained the rights of users from past records, including the Cambridge Analytica event of the 2016 presidential election. To this end, Facebook may be fined $5.5 billion by the Federal Trade Commission. And Facebook's data protection for consumers is questionable.

Facebook users have reached a quarter of the world's population, so it is imperative to suspend the development of Libra until Facebook reaches a consensus with relevant US regulators.

Facebook is just one of the members of Libra

David Marcus, head of Facebook's subsidiary Calibra, published an article yesterday (July 3) responding to concerns from regulators and society. The article first pointed out that Facebook is just one of the original founders of Libra, and the Libra Association has 28 members. In the headlines, it is easy to think that Libra is only related to Facebook, but this is not true.

Is Libra not decentralized?

Marcus said that Libra is not decentralized like Bitcoin. However, Libra's design is undoubtedly designed for open source networks. This means that everyone can develop applications on the Libra network, such as digital currency wallets. And as time goes by, we will slowly develop nodes and decentralize power. Before this, the network should start with a "trusted" company,

It's important to start with trusted companies that run Libra in a regulated environment while ensuring the expertise needed to operate a Libra network. There is no doubt that there are many more decentralized blockchains on the market, but we will work hard to gradually make Libra more decentralized.

Libra can't solve financial problems at all?

Many people claim that Libra cannot solve the current "financial inclusion" problem. Many people feel that these people cannot enter the financial system because they have insufficient assets, so they cannot deposit assets into the bank, and Libra cannot solve this problem. Marcus responds and writes,

The current system is designed so that if your balance is below a certain value, you will not be able to afford the cost of using the system. This is not to say that they are unable to use modern financial services, but they are on the edge and are forced to charge high fees. With Libra, anyone can afford to secure their assets, enter the world's economic system, and trade at a lower cost, as long as they can afford a $40 smartphone.

Libra will work with regulators

Marcus believes Libra will pose a risk to the financial system if used improperly. This is consistent with the views of the Financial Services Commission. Knowing Libra's potential risks, Libra is committed to working with regulators, central banks, and legislators to ensure Libra can help solve today's financial system problems, especially money laundering and terrorism,

We believe that if a trading system network brings more cash transactions, it is also a large number of illegal activities. The network will use KYC to control risk and, through collaboration with regulators, analyze online transaction data to improve financial crime monitoring and enforcement efficiency. More importantly, Libra will actively talk to relevant regulators.

Can users trust Facebook as a financial institution?

Facebook does not control the Libra network, the user's currency, or the reserves behind Libra. Facebook is just one of the Libra associations and does not have any special rights.

And while Facebook created a subsidiary, Calibra, in Libra, the wallet service. However, Facebook will not have Calibra's financial data, and more importantly, users can use other managed or unmanaged wallets, which are previously "interoperable", meaning that users can pay or accept payments through different company wallets.

Facebook does not assume any special responsibility for the Libra network, but we sincerely hope that users can have more positive feedback on the Calibra wallet. We have clearly defined the separate implementation mechanism for Calibra and Facebook's user financial data. We will fulfill our commitment and work to make the wallet a real application.

Why does Facebook want to think about Libra?

Marcus said that Libra and Facebook's goals are the same, allowing the world to connect more closely. Now, people around the world can send messages, videos, photos, etc. to each other, but they can't transfer assets. Natural human rights, the economy is also one of the rights, which is one of the core values ​​of Facebook. Facebook has provided free communication freedom for billions of people and now hopes to do the same in digital currency and financial services. Marcus pointed out that this is not only for the user but also for Facebook itself,

If Libra succeeds, Facebook will first gain more commercial profits through its app. This means there will be more commercials, and advertising delivery will hopefully be more effective, so advertisers will buy more ads to grow their business. In addition, if Calibra wins everyone's trust over time, we will be able to start offering more financial services and create other sources of income for the company.

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