A lot of people don’t like Libra. We’ve already established that, but now Jack Dorsey – the CEO of both Square and Twitter and arguably as big a social media conglomerate as Mark Zuckerberg – is taking aim at the project, claiming that Libra isn’t even a cryptocurrency.
Dorsey: We’ll Never Join with Libra
One social media CEO is attacking the other, and Dorsey – while speaking at a Twitter News Summit in New York City – explained that Libra could be just a “gimmick;” a false and phony project that his company wants nothing to do with.
This is the exact opposite of Dorsey’s feelings towards bitcoin, which he believes will ultimately become the world’s single currency within the next ten years. Libra, on the other hand, he suggests the world can do without.
When asked if Twitter would ever join hands with the Libra Association, Dorsey promptly replied:
Hell no. Nothing within Libra had to be a cryptocurrency to do what they want to do. They use that label literally. It’s completely incorrect… I don’t know if it’s a gimmick, but cryptocurrency wasn’t necessary to make that thing work.
What’s interesting is that Dorsey doesn’t necessarily seem to think Libra itself is anything bad, but that calling it a cryptocurrency is somehow incorrect. He suggests that digitizing the payment platform is simply an excuse to call Libra as such but that it could have easily been fiat or a system of plastic cards to work.
At the end of the day, Libra – given the presence of the Libra Association – will arguably be a centralized currency, which goes against the very notion of crypto. Digital currency is designed to give more power to the people using it, whereas central banks or institutions are often in control of traditional or mainstream money flows. Libra, he claims, falls into the latter category.
Dorsey isn’t alone in his present sentiment. Riccardo Spagni, a lead maintainer of Monero – the world’s primary privacy-centered coin – commented that calling Libra a cryptocurrency was “intellectually dishonest.”
It’s Too Centralized to Be Digital Currency
Not to put too fine a point on it, but from a technical perspective, there is little difference between Libra’s consensus mechanism deciding if your transaction is worthy of inclusion, and Visa alone deciding if your transaction should be processed. It’s central banking by another name, a permissioned central banking committee instead of a government-appointed one.
Libra has had a very difficult time winning people over. This past week has marked a hard time for Mark Zuckerberg, who recently spoke before a congressional committee to discuss both Libra and his company’s plans regarding finance and digital currency. Many democrats, such as Maxine Waters, made it clear that they didn’t trust Libra, and want the project called off until further information can be gathered.