Ever since Facebook revealed the white paper for its Libra project in June, it has faced unending challenges. Now, Mark Zuckerberg, the company’s CEO has confirmed that Facebook is taking a lot more careful approach to Libra than it has ever done for its previous projects.
Zuckerberg seemed to show a rare display of fear in the face of mounting regulatory reviews on Libra. He was speaking in an interview on September 26 with the Asia-based news outlet Nikkei.
Facebook’s global coin has repeatedly come under fire from regulators, governments, and central banks throughout the world. Most of these regulators fear that if left untamed, Libra cryptocurrency may dismantle the rule of law and even cause havoc in the global economy. Some of these fears could be biased but governments are not ready to take any risks.
High-ranking regulatory hearings have, up to now, failed to eliminate the negative reactions towards the project. Governments are worried that Libra will also undermine fiat currency systems. Zuckerberg explained:
“Part of the approach and how we’ve changed is that now when we do things that are going to be very sensitive for society, we want to have a period where we can go out and talk about them and consult with people and get feedback and work through the issues before rolling them out.”
The CEO believes that the company is taking a very different approach than what it would have done five years ago. However, he affirms that this is the right way of doing things given the scale at which Facebook operates.
Coinbase chief labels criticism as ‘odd and misguided’
Pre-emptively solving issues of Libra detractors find unappetizing strikes a remarkable contrast to fiat alternatives such as Bitcoin (BTC). It is worth stating that Bitcoin’s founder, Satoshi Nakamoto, just released the code and allowed the network to grow organically.
Crypto sources have now cast contempt on the regulators and authorities striving to choke any innovation that Facebook is trying to introduce. Brian Armstrong, the CEO of Coinbase tweeted on September 26:
“Libra is one of several important crypto projects on the horizon with the potential to improve the world. Whether it works or not still remains to be seen, but I find the backlash to it a bit odd and misguided.”
Libra is scheduled to appear for widespread use by the end of 2021. However, during the interview with Nikkei, Zuckerberg avoided committing to any timeframe.