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Home / Business / Facebook's Libra cryptocurrency project is a & # 39; walled garden & # 39 ;: Ripple exec

Facebook's Libra cryptocurrency project is a & # 39; walled garden & # 39 ;: Ripple exec



A facebook cryptocurrency The weight logo appears on a smartphone.

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Facebook's plan to create a digital currency comes with a big flaw, according to a leader at blockchain startup Ripple.

Marcus Treacher, Ripple's senior vice president of customer success, told CNBC earlier this week that one of the big problems with the Social Network's Libra project is that it is a "walled garden" ̵

1; in other words, a closed system.

The term has previously been used by technology companies such as Facebook and Apple in relation to their control over their software and apps.

Facebook's proposed libra token will be managed by a Switzerland-based organization known as the Libra Association, whose members include Visa, PayPal and Uber. The coin would be tied to user deposits in currencies like dollars and held in a digital vault known as the Libra Reserve.

Ripple is known for its blockchain-based payment network used by some of the world's largest banks to move money across borders in real time. Blockchain, originally known as the network behind bitcoin, is a digital ledger that records data over a network of computers spread around the world.

Treacher said that unlike Facebook, Ripple has "no fenced yard": "Yes it is a network, but it has no parameter. It connects to all players who want to use the technology."

Ripple exec added that it was still a "really good thing" as a Silicon Valley giant as Facebook played a role in the digital assets space.

The social media giant's plans for a digital symbol have come under intense scrutiny from global regulators amid concerns that it could severely disrupt the economic system. The concern for many governments, Treacher said, is that libra is "a threat to currencies."

Ripple hit headlines in late 2017 and early 2018 amid a monster rally in cryptocurrencies that saw XRP – a sign the company uses – soar to a record high of more than $ 3.

Prices experienced a huge retracement the following year, and the XRP last traded at around 24 cents, according to CoinDesk data.


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