Andreas Antonopoulos Says Facebook’s Libra Will Not Bank the Unbanked

News / 24.02.2020

Various concerns have been raised since Facebook announced its plan to release Libra in June 2019. The controversies surrounding the stablecoin project are such that its launch remains uncertain.

Some people think Libra lacks the features to be launched as a crypto while some remain positive about its launching. In recent times, Ueli Maurer, a member of the Swiss Federal Council, said the Libra is a failure in its current form, thereby requiring rework for approval.

Similarly, according to the opinion of Brad Garlinghouse, Ripple’s CEO, the launch of Libra would not happen prior to 2023. Another individual recently voiced the same opinion. Andreas Antonopoulos, author of Mastering Bitcoin, spoke about it in an interview. He talked about the stablecoin bringing in financial inclusion and assisting the unbanked, as noted in the whitepaper.

Antonopoulos said Libra is basically something different as it notes the arrival of the pioneering corporate cryptocurrency. Nevertheless, he said Libra appears to lack the features that make Bitcoin or any other open blockchain attractive.

Antonopoulos said he came up with some criteria that people can utilize in evaluating projects like Libra. They include:

“Is the system open? Is it open to access, to participate? Is it borderless? Is it neutral to source-destination purposes and amounts? Is it censorship resistance? Is it immutable? Is it publicly verifiable?”

However, he noted that Libra did not pass the test on these features. Regarding the notion that Libra could end up being controlled by an individual, he said its centralization would make it abide by regulations and thereby make it fail to deliver the promise of banking the unbanked.

He said it is impossible to bank the unbanked from within the existing system of regulations because they led to under-banking. According to Antonopoulos, Libra is destined to fail if its success is defined based on banking the unbanked and reaching everyone.

Facebook and its shareholders could possibly enjoy great success with the Libra project but would also be a global threat because it provides tools for the extension of surveillance capitalism into the daily financial lives of many people, says Antonopoulos.

If we go by what is in the whitepaper, Antonopoulos said Libra will not be able to launch in the form and will not be launched in all countries.

Featured image courtesy of Shutterstock. Source: Cryptopress.

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Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.