Skip to content

Facebook’s Libra has blockchain at its core, not cryptocurrencies, says the vice president

April 28, 2020

Despite existing concerns that blockchain isn’t mature enough to usher in the new era of payments, global central banks are increasingly researching the technology. In the meantime Blockchain technology remains the core of Facebook’s digital currency LibraAccording to a senior project manager.

Since the publication of the Libra White Paper in June 2019, lA stablecoin that has not yet been introduced still depends on the blockchain architecturesaid Vice President of the Libra Association, Dante Disparte.

Blockchain unlocks the interoperability of the payment network

In an interview with the financial publication Central Banking on April 28, Disparte described a number of structural advantages that blockchain implementation offers. As part of the benefits of blockchain, the executive described the technology’s potential to improve the interoperability of payment technologies. He said:

“We remain committed to blockchain architecture as a distributed ledger technology for this project. Without them, the project won’t achieve many of the efficiency benefits: the cost-effective structure and interoperability for which it was designed. “

Facebook’s Libra has blockchain at its core, not cryptocurrencies, says the vice presidentFacebook’s Libra has blockchain at its core, not cryptocurrencies, says the vice president

According to Disparte The interoperability problem is one of the biggest challenges for global payment networks. “Because the technologies don’t communicate with each other, it often takes years for units to make payments to each other,” said the managing director.

Disparte continued:

Without blockchain in the pound core and this common technology among the union members who would run validation nodes, it would be much more difficult to have a digital wallet environment that has no monopoly effectswhere the user is bound to one or the other provider. “

Cointelegraph contacted the Libra Association to learn more about how exactly Libra plans to address interoperability issues via blockchain. The association had not yet responded to the editorial deadline.

“The cryptocurrency aspect is not the key dimension of innovation,” says Disparte

In the interview, Disparte also mentioned a shared narrative that says so Cryptocurrencies are not as important for innovation as blockchain technology.

Disparte said:

“The cryptocurrency aspect is not the key dimension of innovation. The real breakthrough is building the protocol layer for value transfer. That is the Libra’s great contribution. Without blockchain at heart, it is very difficult to achieve this openness that we want to develop at wallet and user level. “

According to the executive, the Libra Association expects to launch Libra in the fourth quarter of 2020. By then, the project hopes to solve the key issues, including regulation, organization, and preparation for the transition from the test network to the main environment, Disparte said.

The scale is making further efforts to start the project

Dispartes interview comes after Libra has recently made new efforts to advance the project. On April 16, the Libra Association applied to the Swiss Financial Market Authority for a payment system license and made numerous changes to its white paper.

In addition to working on regulatory issues, Libra has further expanded its members and team. On April 20, the Libra Association added the non-profit organization Heifer International. The association today partnered with the UK payment company Facebook’s digital wallet, Calibra, also wants to create 50 new roles for its workforce in Ireland.

Receive Breaking News !

Enable Notifications    Ok No thanks