Ethereum co-founder Mihai Alisie expresses concerns about Libra

12 Jul, 2019
by David Robb
Ethereum co-founder Mihai Alisie expresses concerns about Libra

One of the co-founders of Ethereum has shared his thoughts on Facebook's upcoming crypto project. Mihai Alisie believes that Libra's centralization is a major cause for concern.

Since the release of the whitepaper for Libra, Facebook and the Calibra organization it has set up to develop its new crypto venture have faced a number of criticisms from various quarters. Many from the financial sector, as well as government authorities, are worried about a company as influential as Facebook effectively creating its own form of money. Calibra head David Marcus has corresponded with members of the U.S. House of Representatives, and will appear at hearings arranged by both Congress and the Senate later this month.

Meanwhile, those within the crypto community are particularly concerned about the amount of control Facebook will exercise over Libra, and the likelihood that the stablecoin project will effectively be centralized. 

Libra will be backed by the Libra Association, which comprises a number of validators who are in charge of the crypto's governance. With the exception of Coinbase, most of these stakeholders are from the traditional finance sector, and will be unlikely to share the crypto space's key values of economic freedom and privacy. Although the financial data acquired by Calibra will apparently be kept on separate servers from those of Facebook, it's possible that the team behind Libra will have access to the extensive user data already gathered by Mark Zuckerber's social media giant.

"Will Facebook share personal data with Calibra? Based on what I’ve read, I think that will be the case", Alisie said, in an interview with Bloomberg. "This has implications on so many areas, from the economic to the political to the technological to surveillance and data privacy...It’s a very well-oiled machine of surveillance...It is actively manipulating the behavior of people on a global scale".

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