Facebook created an enormous stir when it announced plans to introduce the Libra. This token could instantly take over a vast percentage of global transactions since the social media giant has so many users. With a growing marketplace, providing a token not only makes sense, it also provides a major threat to the existing system.
The proposition of the Libra got people from both ends of the debate up in arms.
Regulators and central banks hate the idea because their power is threatened. While many voiced concern over Libra's impact on Bitcoin, the reality it is posts a major threat to fiat currency. With rapid adoption, the Libra could establish an overnight shadow banking system outside the controls of both governments and the central banks.
At the same time, crypto enthusiasts detest the idea of a centralized corporations (and the associated other companies tied to it) entering the space under the guise of "cryptocurrency". This would only serve to confuse people into thinking they were entering a different system when, in fact, it was just swapping masters.
Welcome to the world of blockchain. Facebook is quickly realizing that no matter what the regulators say, the coders in crypto can change things on a dime.
The Libra will have a cousin, it is called OpenLibra.
Facebook put a lot of time and effort into developing the code for Libra. Now, they find themselves forked.
OpenLibra is a permissionless stablecoin based upon the Libra. It will run on decentralized public blockchains. The token will be a peg to Libra, providing everyone with an open alternative.
Anything that is built upon Libra will be able to operate on OpenLibra. It is a "drag and drop" situation.
Lucas Geiger, one of the individuals behind the new project summed it up this way:
“In Libra we trust, in Facebook we don’t.”
Facebook still has a lot of work to do if it is going to get the Libra passed regulators. Being a centralized entity, there is a company to go after. With a decentralized platform, the access point of attack is less clear.
“We have less regulatory exposure than Facebook. Governments have less leverage on us. … We gain strength by having more members that are decentralized not just geographically but politically and economically.”
For full details about the project:
Isn't blockchain wonderful?
People are now starting to realize how hard it is for the centralized establishment to maintain control. Even companies that are entering the blockchain space hoping to create a "hybrid" situation where they get the benefits of blockchain will increasing their power are finding that the fork is the ultimate weapon.
When you have people with this mindset, it gets rather tough for a centralized entity to use its might to reach the desired end.
“We’re going to fork the code, fork the community and create a new cryptocurrency called OpenLibra,” said Geiger during his presentation at Devcon. “There is no token sale. No equity and no company behind this initiative.”
OpenLibra’s core team includes representatives from blockchain projects including Cosmos, Web3 Foundation, Democracy Earth and others, as well as non-profit organizations such as the Danish Red Cross.
You know you are on the wrong side when the Danish Red Cross is opposed to what you are doing and is willing to prevent what is taking place.
Ultimately, this provides a way for people to protect themselves and, more importantly, their money, by having an option. One of the drawbacks we can envision is the fact that the Libra will allow for access to accounts. This means people truly do not control their money. To make matters worse, if purchases are made that are deemed "inappropriate" (or against the proverbial terms of service), they can be blocked.
Using the OpenLibra will mean that all transactions will go through just like they do on any other decentralized public network.
I will say that did not take long. It was only a matter of time because someone stood up and challenged what Facebook is trying to do.
World domination isn't going to be so easy for Mr. Zuckerberg.
If you found this article informative, please give an upvote and resteem.
