David Marcus, the head of Facebook’s Calibra has contested the statement made by authorities that the project poses a threat to nations’ “monetary sovereignty,” most promoted by France’s Economy and Finance Minister, Bruno Le Maire.
The Calibra chief clarified 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 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.
“We believe strong regulatory oversight preventing the Libra Association from deviating from its full 1:1 backing commitment is desirable,“ he added.
Marcus also pledged to continue working with “central banks, regulators, and lawmakers to ensure we address their concerns through Libra’s design and operations.”
As previously reported, Bruno la Maire, French Minister of the Economy and Finance said that the country will block the development of Libra in Europe because it threatens the “monetary sovereignty” of governments.