David Marcus, head of the Libra project at Facebook, doesn’t see Bitcoin as a currency form, saying it’s digital gold.
Bitcoin Not a Medium of Exchange
Marcus spoke yesterday at the Big Apple’s New York Times Deal Book Conference when he made his remarks.
In his own words, “Because of its volatility, it’s not really a great medium of exchange,” reports CNBC.
Furthermore, the face of Calibra’s digital wallet, a Facebook subsidiary that will provide Libra with a digital wallet, noted that he sees Bitcoin as digital gold because you can hold on to it as an investment, but its volatility means that it is not the best choice for people who need to send cross-border remittances.
On the other hand, Libra will be linked to fiat currencies like the euro and the US dollar, which will allow it to remain stable.
The Push Back
But that didn’t stop the project from receiving negative criticism. Facebook founder and CEO Mark Zuckerberg and Marcus had to make several public appearances since it was announced in June, including facing the U.S. The Senate and the Committee of the House Financial Services. But that didn’t dissuade them from continuing with what they’re trying to do.
Answering a question about how they expected things to turn out, David admitted they knew there was going to be some push back.
I think it was expected and for several reasons, he said. One is understanding that the way this is designed is not trivial. You need to invest a little time to really look into the separation between the Libra Association, which we don’t control anymore, Calibra, the wallet, which is a subsidiary of Facebook, and Facebook itself, and also the fact that this was designed more to operate as a payment system to enable people to have access to modern financial services and digital money, not really as a thing to take over the world.
Interestingly, if he were to do things differently, Marcus pointed out that he would highlight the benefits of creating a new infrastructure to move money around the world for the people who most need it. He said that the idea of creating “money” inspires a lot of people to talk about it, not naming anyone in particular.