Project Libra: ‘Libra and Bitcoin (BTC) do not belong to the same category’

facebook libra whitepaper

Since the unveiling of the white paper of Facebook’s cryptocurrency Libra, more and more people have expressed their opinion about the project. And generally these are negative noises, with here and there governments that rule out that Libra will one day become a legitimate currency in their country. Even today a number of statements about the cryptocurrency arrived.

For example, the head of the Libra project, David Marcus, tweeted about the discussion about whether Libra means the end of bitcoin (BTC) . According to Marcus, this is definitely not the case. This is how he writes on Twitter:

Many put Libra and Bitcoin opposite each other. However, in my opinion, these two are not in the same category. BTC is a de-correlated (investment) asset. Libra is designed to be a stable medium of exchange. I am, and remain, a fan of BTC, but for very different purposes.

According to Marcus, bitcoin is more successful as the “digital gold”, and therefore more as an investment for the longer term. Libra, on the other hand, must become a new means of contributing to daily life, says Marcus.

Libra may not be welcome in India and Russia

In addition to criticism from France, the United States, Sweden and Australia, Libra now also receives criticism from India and Russia. Libra, for example, should not be used by the Reserve Bank of India (RBI) due to strict legislation. Anirudh Rastogi, an expert in the field of legislation and technology:

If Facebook were to design Libra as a closed system, only to be settled on its network and not outside it, RBI would ideally be less concerned because the crypto does not come into contact with the external economy. If the intention is not to work in a closed system, then it is exactly the kind of digital asset that the RBI is concerned about.

Libra is also not welcome in Russia. Anatoly Aksakov, chairman of the Committee on Financial Markets, said that Libra will not be legalized in the country. He said that “the use of the Facebook cryptocurrency as a payment tool in Russia will be banned in my opinion.”

About Shawn Morrison 266 Articles
One of the founders of BitzArena. Active with crypto currency since the rise of the bitcoin. Loves the innovative character of crypto and blockchain technology, and follows developments in the market closely. Likes to connect technology with business, and likes to make difficult concepts accessible to a wide audience.

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