Libra Association Vice Chair Dante Disparte stated this Tuesday: "Bitcoin becoming an asset class has proven that mathematical scarcity can underpin a remarkable asset. But it is not a payment method."
Disparte recently attended the Consumer Electronics Show (CES) in Las Vegas, sharing his insights at the event's digital currency forum with tech enthusiasts and early adopters. He emphasized:
"Payment infrastructure forms the foundation of economic mobility. So far, cryptocurrencies haven't effectively served this purpose. This is precisely why I'm interested in building Libra with Facebook."
The Libra Payment Vision
Disparte believes Libra addresses complex challenges including:
- Driving mass adoption
- Reducing transactional friction
- Lowering prohibitive payment costs for the general public
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Addressing Centralization Concerns
During the conference, Akin Sawyerr, Strategy Lead at Decred (a project focused on blockchain governance), questioned Libra's centralized nature. He argued:
"Decentralized systems outperform profit-driven institutions. True financial sovereignty means individuals controlling their money - in Bitcoin terms, holding private keys ensures no one can confiscate assets. Permissioned systems like Libra, governed by dozens of large entities, face execution hurdles."
Disparte countered these concerns:
"It's premature to judge whether Libra qualifies as 'true cryptocurrency' until permissionless projects successfully deploy payment systems in developing nations at scale."
Beyond Binary Choices
The executive stressed this isn't a zero-sum game: "The world isn't black-and-white - both models can coexist to address different needs."
Current Challenges for Libra
According to reports, initial partners (including PayPal, Visa, and Mastercard) withdrew from the project in October. Despite planned June 2020 launch, regulatory pressures continue casting doubt on timelines.
FAQs
Q: Why can't Bitcoin function as payment infrastructure?
A: While excelling as a store of value, Bitcoin's volatility and scalability limitations currently hinder reliable everyday transactions.
Q: What makes Libra different from other stablecoins?
A: Libra combines multinational corporate backing with designed stability mechanisms, aiming for broader institutional acceptance.
Q: How does Libra address financial inclusion?
A: By reducing cross-border payment costs and providing accessible digital wallets to unbanked populations.
👉 Explore the future of digital payments
Related Reading
- Facebook Executive: Libra Launch May Take Decades But Will Be Worthwhile
- Nobel-Winner Backed Blockchain Firm SAGA Launches Libra-like Global Stablecoin
Key Takeaways
- Bitcoin serves better as digital gold than daily currency
- Libra targets payment efficiency through corporate collaboration
- Decentralization purists remain skeptical of permissioned models
- Regulatory hurdles continue impacting stablecoin projects
Risk Disclosure
Cryptocurrency investments carry substantial risk, with potential for significant price volatility and total capital loss. Carefully consider your risk tolerance before investing.