The head of Facebook’s Cryptocurrency, David Marcus, state that the crypto currency which was given by Libra was not an investment tool, such as stocks and bonds.
According to cnbc.com, Libra is a payment instrument capable of reaching more than 90 million Small and Medium Enterprises. People will use it to send money to family members in other countries, or to make purchases.
This assertion is to dampen fears of many parties after a series of privacy scandals tarnished public confidence in Facebook in recent years. Moreover, many emerging frauds from illegal financial technology.
The man who joined Facebook since 2014 also does not expect the crypto currency project he is developing will soon make money for the company.
The purpose of Libra
He and his company will focus on their first goal to create utilities. He said that our first goal was to create utility and adoption. Allows people around the world, especially those without bank accounts (underbanked), to take part in the financial ecosystem.
In addition, Marcus also ensures that Facebook Inc. will not share any customer accounts and all financial information. Thus, there’s no need to worry about your personal information. Libra is safe and will work adequately with governments and currencies around the world.
Previously, policymakers had been skeptical since Facebook announced Libra last June. Fed Chair Jerome Powell said Libra would cause serious problems. “Libra raises serious concerns about privacy, money laundering, consumer protection, and financial stability,” said Jerome Powell recently.
In response, Marcus stated that Facebook is not alone in operating the Libra so as to minimize any crime. Facebook has collaborated with 27 payment companies, including Visa, Stripe, Paypal, and several technology companies such as eBay, Lyft, Uber, and Spotify.
Instead of worrying about it, Libra will actually help increase Facebook transactions and benefit many people. They hope that Libra digital wallets will benefit Facebook more broadly. Because it allows more than 90 million Small and Medium Enterprises to use the Facebook platform to transact more directly with many Facebook users.
