Ethereum Co-Founder Joseph Lubin Explains Why Facebook Should Not Lead Libra

November 5th, 2019

Joseph Lubin, co-founder of Ethereum in a recent interview commented that Facebook should not lead the Libra cryptocurrency project. 

Facebook’s Past – A Major Roadblock for Libra’s Success

In an interview with CNBC, he said that with all concerns regarding trust and personal identity, Facebook should not be spearheading the Libra project. Lubin further said that Facebook’s past is not helping Libra as the social media giant infamously used its users’ personal information without their permission and monetized people’s attention and addicted them to their systems. However, he acknowledged that stablecoins would enable easier cross-border commerce and better access to price stability.

“We’ll see many Libra-like projects going forward with different kinds of price-stable currencies offered,”

Lubin said.

Revealed in June, project Libra had a grand introduction with a list of top-notch corporate backers. In a few spans of months, Libra has been subjected to skepticism and scrutiny from the regulators owing to Facebook’s history of mishaps in handling personal data.

Will Libra Manage to Get Regulatory Approval?

As a matter of fact, Facebook will not have sole control over Libra. The project will be governed by a panel of backers. On 15th October, Facebook, in its meet at Geneva,  announced its 21 founding members. Some of the members include Uber, Lyft, and Spotify. The board of directors will consist of David Marcus, Facebook’s leader for the project, and representatives from Andreessen Horowitz, PayU, Kiva Micro funds, and Xapo Holdings. Also, in October, Libra suffered a major setback when Visa, Mastercard, Stripe and PayPal pulled out their support for the project.

In late October, the House Financial Services Committee suggested that project Libra be ceased till it addresses its loopholes. To this,  Facebook CEO Mark Zuckerberg replied that the company will not be a part of launching the Libra payments system until it gets the regulatory approval. Interestingly, in the session Libra Association voted to move ahead without regulatory approval, Zuckerberg said Facebook “would be forced to leave” the project.