Facebook’s Libra coin could engage in selective censorship in centralized direction, claims David Schwartz

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Cryptocurrency and blockchain technology has become a household name in the financial ecosystem. After initially being skeptical about the whole idea of digital currency and virtual assets, mainstream companies are now exploring the medium of cryptos.

Facebook, after being against the idea of cryptocurrencies in 2016-2017, recently announced that they were soon going to launch their own crypto assets.

The entire crypto community was split amidst its impending launch as a part of the community indicated that it was not decentralized like other major cryptos like Bitcoin. However, the threat did not loom only over BTC.

Charlie Shrem, Founder of BitcoinFoundation.org, recently suggested that the introduction of Libra, Facebook’s global crypto coin, would ‘render Ripple useless.” He also suggested that the first organization that would launch a LIBRA/BITCOIN exchange would make a massive profit.

However, Twitter user jratcliff stated,

“To my understanding this is supposed to be denominated in USD. So the fact that it’s using “blockchain” is irrelevant. It’s just another Venmo ,PayPal, Square, Apple pay. Calling it “crypto” is nonsensical. If it used an Oracle database it would not be functionally different.”

Keeping in line with the same conversation, Eric Wall and David Schwartz discussed the indicated functionality of Facebook’s GlobalCoin.

Since Libra was suggested to operate under the custody orientate module, Eric Wall queried whether Libra can engage in selective censorship, considering Libra was “perfectly fungible”.

David Schwartz said they can, and replied,

“In a fork, it gets to choose which side to back, so it picks all rules. If regulators say it must honor balances on fork it can censor, it will do that.”

David Schwartz also suggested that the entire space of PoW was getting more and more centralized, even Bitcoin. Over the same period, XRPL had developed into more of a decentralized structure and he stated that the development was nowhere near completion.

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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.

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