- Libra saw a lot of controversy from the crypto community when it was first announced.
- Nic Carter claimed in an exclusive interview that Facebook has made a big mistake with the Libra project.
- Carter went onto talk about the crypto space being under a specific amount of scrutiny this past year.
Facebooks upcoming stablecoin, Libra saw a lot of controversy and ‘feedback’ from the crypto community when it was first announced. The flame seems to have dimmed down a bit in recent months but if you say the name of the social network in the space, you’re probably going to be met with either a scolding or bullish sentiment.
It’s safe to say that there are a lot of people contesting the utility and function of Facebook’s crypto project.
Nic Carter of CoinMetrics has claimed in an exclusive interview that Facebook has made a big mistake with the Libra project. Or more, they made a miscalculation with the stablecoin. Carter further went onto say that the idea that Facebook had was essentially something that could result in an international currency through the messaging platform but the shortcomings shadowed it:
“Libra thought it was gonna have this reserve, and we’re gonna fill it with all these foreign currencies, and a little bit of dollars. Obviously, that’s going to offend Congress. Because the dollar is like 70 percent of all international trade.”
Carter went onto talk about the crypto space being under a specific amount of scrutiny this past year. This comes from the media, state actors and more. This came particularly after Gerald Cotten passed away and thousands of people lost millions of dollars, leaving the question of trust.
“Cotten was such a good case study. What people thought was the case was not the case as it was reported. I was super skeptical of the original story -- that this guy just lost some keys. He basically operated a Ponzi exchange. It's really a story about fractional reserve banking and how everything goes wrong when people think an exchange doesn’t have sufficient reserves. At that point, there's gonna be a run on the bank. That’s why I really agitate for proofs of reserve. Exchanges should publish periodic attestations that they have X amount. Quadriga should be a catalyst for this. But nobody gave a shit. It was nothing to do with the security of bitcoin or custody. It collapsed because this guy was a fraudster. For whatever reason, people don't demand proofs of the actual solvency, at least with the vigor they might question banks.”
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