According to Marcus Treacher of Ripple, Facebook’s plan to create a digital currency Libra comes with one major defect.
Marcus Treacher, senior vice president of customer success from Ripple, told CNBC that a big problem with the social network’s Libra project is that this cryptocurrency is a “walled garden” or a closed system.
Facebook’s proposed cryptocurrency, the Libra token, will be managed by Libra Association, a Switzerland-based organization, whose members include Visa, Paypal, and Uber. Treacher mentioned that Ripple, compared to Facebook, has “no walled garden” or an open system.
“Yes it’s a network, but it has no parameter. It connects with all of the players that want to use the technology,” Treacher said. However, Treacher mentioned that it was still a “really good thing” that Facebook was playing a role in the digital asset space.
Facebook’s plans for a digital token have come under intense inspection from global regulators amid concerns that this could disrupt the financial system heavily. Treacher said that Libra could be a “threat to currencies” and this may worry for many governments.
Ripple is known for its blockchain-based payments network. Blockchain may refer as a digital ledger that records your data across a network of computers that scattered around the world.
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