Ethereum co-founder Joseph Lubin called Facebook’s cryptocurrency “a centralized wolf in a decentralized sheep’s clothing”.
“Perhaps most importantly, it requires our trust that Libra will eventually transition to a more ‘permissionless,’ decentralized system, whereby anyone can validate the network, rather than the restrictive member evaluation criteria keeping control in the hands of the initial 28 firms,” Lubin pointed out in his article published on tech news outlet Quartz.
However, Ethereum co-founder sees some good in the project. He says that in a few years there could be two billion Libra users, and cryptocurrency user experience could be improved in the process.
Facebook introduced its own Libra cryptocurrency on June 18. The company received support from Visa, Mastercard, PayPal, Uber, eBay, Farfetch and other financial and technology companies. Libra’s global launch will take place in the first quarter of 2020, and testing will begin at the end of 2019.
Libra can become a powerful payment tool in emerging markets, for example, in Venezuela, where the purchasing power of fiat currencies is unstable. Thanks to Libra, citizens of such countries will be able to get access to a more reliable financial platform than the national currency, financial and cryptocurrency expert Caitlin Long writes in Forbes.