What the technical details behind Libra reveal about Facebook's plans

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John deVadoss-development lead for NEO based in Seattle, former general manager at Microsoft, and a computer scientist with a focus in machine learning and neural networks-shared his insights from analyzing and testing Facebook's Libra.

"Facebook is trying to build a global bank and is attempting to create a world currency. And it's certainly doable, with usage across billions of individuals and the support of a large number of institutions. It's an attempt to remake the global banking infrastructure."

"Libra is an attempt to build a global bank that piggy-backs on existing central banks' monetary policy, with the goal of taking over and eventually deprecating them."

"I'd argue, it's more Venmo-like. For example, Calibra, the wallet that holds the cryptographic keys for the users-Facebook can move assets around for users. For now, it's a walled garden-it's old school-and with the Libra Association Facebook can extend its reach beyond the walled garden."

"That is not their goal. This goal is not to build a platform, but to build a solution - one more Facebook app, or perhaps it is better to think of Libra as one more set of Facebook features."

"Libra is clearly competition for stablecoins. Bitcoin isn't so much threatened, but stablecoins will have to ask themselves hard questions."

"Libra provides new options for on-ramping. You can think of scenarios, where for example, you sell your old bicycle on Facebook Marketplace-are you able to translate this to Libra directly? If so, this could accelerate mass adoption. This is good for Bitcoin and good for NEO.".

"You can argue that WeChat pioneered the combination of a social network and enormously scalable payment system. Facebook is openly mimicking WeChat. But, Facebook's ambition is much, much bigger. The big question for Facebook is how they will convince regulators and other players to collaborate."

DeVadoss continues by suggesting Libra was built by business people rather than the "Geeks" of Facebook.

Because of Facebook's size and scale, Libra is still massive news for cryptocurrency.

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