As Libra continues to remain under the scrutiny of regulatory watchdogs, David Marcus, the Head of Calibra, tried to debunk the popular narrative that Libra could potentially threaten the sovereignty of Nations.
In an elaborate Twitter thread, Marcus stated that Libra was designed to be a better payment network and system running on top of existing currencies. According to him, Libra would deliver meaningful value to consumers all around the world. Addressing the claims regarding Libra being a threat to the monetary sovereignty, Marcus stated,
“Libra will be backed 1:1 by a basket of strong currencies. This means that for any unit of Libra to exist, there must be the equivalent value in its reserve. “
He also said that regulatory oversight was important to keep the association from deviating from its commitment and added that the blockchain firm would continue to engage with Central Banks, Regulators, and lawmakers to ensure the regulatory concerns are addressed through Libra’s design and operations. Marcus’s tweet read,
“We also believe strong regulatory oversight preventing the Libra Association from deviating from its full 1:1 backing commitment is desirable.”
Marcus revealed that he was looking forward to the association taking on full leadership of the project soon after its charter has been ratified after which the CEO would focus on building Calibra, a subsidiary of Facebook. Calibra’s immediate goal is to develop and launch its own digital cryptocurrency wallet and subsequently integrate the wallet into other Facebook products.