Joseph Lubin Criticizes Facebook Cryptocurrency for Centralization

By Katelyn James | June 24, 2019
Joseph Lubin Criticizes Facebook Cryptocurrency for Centralization Joseph Lubin Criticizes Facebook Cryptocurrency for Centralization

Ethereum co-founder Joseph Lubin has criticized Libra token, Facebook’s upcoming cryptocurrency, saying “a centralized wolf in a decentralized sheep’s clothing”.

According to an article published on tech news outlet Quartz, Lubin highlighted the centralized infrastructure of Libra token:

“Perhaps most importantly, it requires our trust that Libra will eventually transition to a more ‘permissionless,’ decentralized system, whereby anyone can validate the network, rather than the restrictive member evaluation criteria keeping control in the hands of the initial 28 firms.”

Lubin then highlighted the credibility of the network, fiat currency and government bond backing for end users and merchants. “People will increasingly trust decentralized forms of governance” Lubin cited from Libra’s white paper.

Moreover, Lubin claimed that the white paper using tactics that targeting people’s common feelings. It said “sending money across the globe should be as simple and inexpensive as sending a message on your phone,” and “financial infrastructure should be globally inclusive and governed as a public good.”

Besides criticism, Lubin also admitted some positive points of the project. He said the UX could be vastly improved, and Libra users might reach 2 billion in the future.

“In one fell swoop, talented UX designers could reduce the current friction of using cryptocurrency. Managing private keys, understanding ‘gas payments,’ and installing crypto browser plugins could be as simple as pressing ‘send’ in WhatsApp, another Facebook-owned entity.”

Recently, Facebook has reportedly released the white paper for its cryptocurrency. The Libra currency is built on the Libra Blockchain – a decentralized, programmable database designed to support a low-volatility cryptocurrency that would serve as an efficient medium of exchange for people worldwide. According to the white paper, Libra will start as a permission blockchain with the goal of becoming permissions in the future.

In July, the US Senate Banking Committee will be holding a testimonial hearing session for Facebook, regarding its cryptocurrency project – Libra, according to The Crypto Sight.

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