Libra co-founder and chief economist of Calibra Wallet Christian Catalini has attempted to clear up misconceptions in relation to the planned digital coin in an interview with CNN’s Julia Chatterley.

The release of the whitepaper on Facebook’s (NASDAQ:FB) proposed coin back in June prompted massive debate from politicians around the world, most of which vehemently oppose the plan as they feel it poses a threat to the economic sovereignty of nations. Catalini has attempted to allay some of those concerns by saying that Libra is, at its most basic, a payment network that will allow for seamless and cheaper international transactions while also supporting several other services, such as the Calibra wallet.

Catalini also said that the overall aim for Libra is to provide banking services for unbanked and underbanked global citizens while adding that the increased transaction fee associated with the traditional financial system was also a contributing factor. He was also pressed as to whether the massive scrutiny leveled at Libra had deterred those behind the project, but said that he had anticipated such a reaction and that the association expected widespread criticism from regulators.

Despite believing that the majority of the controversy comes from Facebook’s involvement with the project, given the company’s shady history of data gathering, Catalini remained hopeful and said that “regulator’s scrutiny is productive. It helps us to think through about the challenges the project would face if successful in the future.”

Importantly for regulators, when quizzed on the subject of whether or not Libra is competing with traditional fiat currencies, Catalini said that because the project is a payment network, it will simply integrate traditional currencies into the platform so that transactions can be completed with them.

>> Ripple Finalizes $50 Million Investment in MoneyGram

Earlier this month, it was reported that the Libra testnet has surpassed 51,000 transactions since it was reset in September, with 34 projects having already been developed on the network. It remains uncertain as to when the platform will officially be launched, but it is believed that the Libra Association is aiming for a mid-2020 release.

Featured Image: DepositPhotos © poringdown@gmail.com

If You Liked This Article Click To Share

Bitfinex and its sister stablecoin issuer Tether have been handed another lawsuit alleging both firms manipulated the crypto market, following a similar such suit last month in New York, which claimed the companies created “the largest bubble in human history.”

The second suit has been filed by Eric Young and Adam Kurtz at the district court in the Western District of Washington on November 22 and draws heavily from the previous lawsuit. In an extensive list of claims, Young and Kurtz say that Bitfinex and Tether “monopolized and conspired to monopolize the Bitcoin market,” as well as manipulated the market, manipulated information, or made inaccurate claims.

The manipulation centers around Bitcoin and its massive bull run in 2017, which saw BTC trade as high as $20,000 USD. Both lawsuits cite a study by academics at the University of Texas who analyzed over 200 gigabits of data relating to the transaction history between Bitcoin and Tether and found that the surge in value in late 2017 was attributable to one large trader, or a whale in the crypto world. Bitfinex hit back at that study, claiming it was “built on a house of cards” and unsubstantiated due to a lack of a complete dataset.

Bitfinex has again responded to the new lawsuit in a blog post on Sunday. “As we predicted last month, mercenary lawyers continue to try to use Bitfinex and Tether to obtain a payday. To be clear, there will be no nuisance settlements or settlements of any kind reached. Instead, all claims raised across both actions will be vigorously contested and ultimately disposed of in due course,” the exchange wrote.

>> Bitcoin Falls Another 10% on China’s Crackdown: Should You Be Worried?

While Bitfiex is resolute in its denial of the accusations leveled at it, the company and its sister firm Tether have regularly shrouded themselves in controversy and suspicion. Tether has frequently flip-flopped on its stance as to whether its coin is backed 1:1 with the USD. Recently, it said its stablecoin was backed by reserves but did not specify what those reserves were.

Featured Image: DepositPhotos © ezthaiphoto

If You Liked This Article Click To Share