Facebook's Chief Executive of Calibra, the company's cryptocurrency arm, stated that the company does not intend to profit from the use of the Libra currency.

Facebook's Chief Executive of the cryptocurrency project, Marcus, stated that he is responsible for addressing concerns regarding Facebook's overall goals for Libra and cryptocurrency. He then mentioned that the company does not expect its new project, Libra, to immediately become a profitable entity.

Facebook is causing such a big buzz today, not only because it is a leader in its own right, but also possibly due to a series of privacy scandals in recent years that have tarnished the public's trust in Facebook. This inevitably raises the question: Can we really trust the Libra project?

Markus expressed these concerns, which the company has acknowledged, and is currently trying to quell the anxiety surrounding Libra by downplaying its profit motives in the project, emphasizing its represented social mission. He stated:

Our primary goal is to create a public utility and adoption that enables people around the world, especially those without bank accounts or in debt, to participate in the financial ecosystem. I joined Facebook from PayPal in 2014 and started working on this project two years ago. I can attest that Facebook will not profit in the early stages of Libra and will ensure that "customer accounts and financial information will not be shared with Facebook," and therefore cannot be used for ad targeting.

We are all aware that in ICO projects, we are not only investors, but also "users." Markus stated that this new currency is a payment tool, not an investment. People will not buy it like stocks or bonds and expect it to generate income or increase in value. Instead, it's like cash, for example: people will use it to remit money to family members in other countries or for transactions.

Facebook also intends to convince officials that this currency is safe and will fully cooperate with governments and currencies worldwide. However, since the announcement of Libra in June, governments have expressed skepticism. The Chairman of the Federal Reserve said:

Libra raises public concerns about privacy, money laundering, consumer protection, and financial stability.

Facebook is trying to soften the connection between its brand and the new currency by involving other companies. The founding members of the project include 27 other companies and organizations, such as payment companies Visa, Stripe, PayPal, as well as eBay, Lyft, Uber, and Spotify, among other tech companies. Markus pointed out that Facebook will have the same voting rights as other founding members, so it cannot control the entire organization.

However, Markus also admitted that Libra will indeed benefit Facebook, as it will provide transactions for many of the platform's numerous users. He said:

Many of the 90 million small and medium-sized businesses inside Facebook will be able to transact more directly with other Facebook users, and we hope this will lead to more consumers and businesses using Facebook.

Related Reading

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