Mark Zuckerberg’s ambitious crypto project Libra has been among the top controversies around the world ever since it was launched back in June. Government authorities all over the world have been raising their concerns about it; while some are raving about the benefits, it can bring to the table. However, the continuous drilling and questioning of the Libra officials are still on, and recently, co-founder Christian Catalini stated that people don’t need to trust Facebook to trust Libra, which sounds fair enough, but is it?
The whole debate around Facebook’s Libra project has been around the vulnerabilities it inflicts upon the global financial system, and the data security of the users, especially after the infamous Cambridge Analytica scandal. Since then, the credibility of Facebook and its founder has gone down substantially, and the public would think twice before trusting Facebook for their financial data.
However, as per Catalini’s statements, there are about 21 other members of the Libra Foundation, which will govern the Libra token and the Calibra Crypto Wallet. However, prominent names that were part of the earlier 28-member panel have withdrawn from the project, like PayPal. In his recent interview, Catalini, whose also the Head Economist at Libra, said that there’s always pushback from the authorities whenever we witness something revolutionary happening, like the internet. He, on the other hand, added that higher-level scrutiny is, in fact, good for the future of the industry. When asked about the data issues people have, he said,
There was recognition that users, especially in the US. & EU, don’t want the co-mingling of social & financial data. That’s why Calibra is essentially separating social and financial. You don’t need to trust Facebook to trust Libra.
However, the trust issues Libra has doesn’t end with fixing the authorities, as it also has issues with many from the crypto industry itself. For instance, speaking at an event, Ripple Chief Brad Garlinghouse recently lashed out heavy criticism on Libra. Besides, when Jack Dorsey was asked whether he would join the Libra project, he said, “hell no.” Therefore, Libra has a long road ahead in terms of gaining trust.