The introduction of Libra was met with a lot of reaction from all corners of the crypto-space, with many hotly contesting the utility and functionality of Facebook’s crypto-project.
In an exclusive interview with a media outlet, CoinMetrics’ Nic Carter claimed that the social media company has made a huge miscalculation with the Libra project. Carter claimed that the proposition put forward by Facebook, which translated into the creation of a global currency through a messaging platform, had certain shortcomings. He said,
“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 also highlighted the fact that the government did not take digital currencies or non-sovereign assets seriously until Libra was announced. According to Carter, people in power underestimated the influence of assets such as Bitcoin as they did not realize that a non-corporate project could also bolster the credentials of a somewhat viable form of capital.
The creation of a US digital dollar was also vehemently speculated recently but Carter believes that such a proposition may not see the light of the day anytime soon. The facilitation of a digital asset would hinder the commercial banking sector and according to Carter, that would not sit well with the U.S government.
Speaking about Bitcoin, from a sense of advancement in the general human society, the Coinmetrics CEO stressed that Bitcoin is one of the most critical innovations in recent times. However, according to him, the concept of blockchain did not come with an assured guarantee. He said,
“You need to attach a computational, real-world cost to the job of including information on the ledger to make sure that the information is good.”
The coin in question, Bitcoin, was priced at $7,321 at press time, with a 24-hour trading volume of $17.1 billion.