Facebook’s David Marcus says Libra Doesn't Threat Monetary Sovereignty of Nations

  • David Marcus defends libra as a technology to improve existing monetary framework.
  • The former PayPal president says that the Libra Association will be in full compliance with regulators.

Former PayPal president and head of Facebook’s libra David Marcus has taken to Twitter to challenge the idea that the digital currency will threaten the monetary authority of sovereign nations. 

No Monetary Disruption

In a string of tweets published Sept. 16, Marcus took issue with how Facebook’s cryptocurrency is being portrayed as a disruptor of global fiscal policy.

As opposed to challenging the existing framework, Marcus believes that libra will serve as a tool for improvement. He explained that the digital currency is being designed as a “better payment network and system” to work on top of the existing fiat infrastructure. 

In addition, he highlighted that libra is a stablecoin deriving its value from a basket of fiat currencies. In order for libra to remain a robust form of payment, it relies upon the continued success of national fiat, rather than creating an all-together new form of money.

Marcus concluded by stating that the Libra Association intends to be in full compliance with regulatory oversight and is willing to work with central banks and lawmakers to ensure the proper implementation of the currency.

Just last week, senior US Treasury official Sigal Mandelker told an audience in Geneva that libra would be held to the highest standard of regulatory compliance in order to combat money-laundering and terrorism funding. 

 

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