Facebook’s David Marcus Responds to Critics Over Libra

Facebook vice president of messaging products David Marcus speaks at the WSJD Live tech conference in Laguna Beach, California on October 18, 2017. / AFP PHOTO / Glenn CHAPMAN (Photo credit should read GLENN CHAPMAN/AFP/Getty Images)

When the European economic downturn was overwhelmed, French Finance Minister Bruno Le Maire found a punching bag, Facebook’s digital currency project Libra. According to The Independent newspaper, last Thursday Bruno Le Maire said, “I want to be absolutely clear: In these conditions, we cannot authorize the development of Libra on European soil.”

Le Mair also added, “It would be a global currency, held by a single player, which has more than two billion users around the world. The monetary sovereignty of states is under threat.”

In a Twitter thread on Monday, David Marcus, who co-created Libra, said he wanted to “debunk” that notion. Marcus said that 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.” As such, Libra will not be creating new money. That function will “strictly remain the province of sovereign nations,” he said.

Marcus also stated that  Libra is being built to be a “better” payment network utilizing national currencies, and “delivering meaningful value to consumers all around the world.” Marcus also pledged to continue working with “central banks, regulators, and lawmakers to ensure we address their concerns through Libra’s design and operations.”