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This article was published on September 27, 2019

Libra exec promises Facebook’s plan isn’t to replace existing currencies

Libra exec promises Facebook’s plan isn’t to replace existing currencies
Yessi Bello Perez
Story by

Yessi Bello Perez

Former Senior Writer, Growth Quarters

The Libra Association really wants us to know that Facebook cryptocurrency is not being created to replace existing currencies.

Manager Director Bertrand Perez, speaking at a blockchain conference hosted at the United Nation headquarters in Geneva today, said: “We are not in the area of implementing any monetary policy with the (Libra) Reserve.”

Additionally, Perez went on to say that the digital currency could help achieve many UN sustainable development goals, including eradicating poverty and improving gender equality – Libra would also benefit the tech giant’s bottom line.

Perez’s remarks come just one day after Facebook CEO Mark Zuckerberg spoke about his willingness to cooperate with regulators, which could cause serious delays to Libra’s launch, currently scheduled for 2020.

It seems nobody actually knows what Libra is going to be

Since announcing its intentions to launch Libra, Facebook has faced increased scrutiny from regulators and governments as well as criticism from those who (rightly) argue the digital currency is not a cryptocurrency.

To date, much of what we know about Libra is based around speculating on remarks such as those made by Perez today. This makes it hardly surprising that project leads are eager to lessen regulators’ concerns.

Many regulators and governments are concerned about the potential implications such a project could have on society and the global financial ecosystem, with some of Facebook’s partners reportedly backtracking as a result.

For example, Yves Mersch, Luxemborgian lawyer and European Central Bank executive board member, says Libra could potentially impair the ECB’s ability to provide liquidity to banks in the continent. It could even, he claims, undermine the Euro altogether.

It’s difficult to predict whether Libra will launch on time, or if at all, but one thing’s for certain: those in power won’t stop arguing about it until it sees the light of day.

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