Coin Center Researchers Say Libra Looks Nothing Like Bitcoin

Coin Center, one of the world’s leading non-profit cryptocurrency research companies, explained that Libra lacks decentralization and is nothing like Bitcoin. Let’s read more about it in the altcoin news below.

The researchers explained that Facebook’s Libra looks nothing like bitcoin and related it with the gold from World of Warcraft:

“We believe that Libra is not a cryptocurrency because of its use of a permissioned ledger and its reliance on a trusted issuer to hold and manage a fund of assets that back the currency. Libra is still part of the broader category of digital currencies along with airline miles, World of Warcraft gold, or Liberty Reserve Dollars.”

One of the key challenges for Facebook is to market Libra more than ‘’air miles for social media.’’ However, the crypto community is gradually changing its opinion on Libra. Many were quick to cheer Facebook’s entry into the digital currency world because of the positive impact of the mainstream interest but later it turned out that the enthusiasm faded away as the reality of the plans of the social media giant have come under scrutiny. With an adjustable supply and privately controller ledger, Facebook’s Libra is still under lock-and-key when compared to Bitcoin’s unfettered ledger.

The research from Coin Center shows that it is apparent that the fundamental missions of Libra and Bitcoin do not correlate. If bitcoin is here to break down the need for centralized entities, Libra aims to improve the current financial establishment:

“Bitcoin’s primary goal is to obviate the need for trusted intermediaries in online payments… Libra’s goal is to make online payments easier, more inclusive, and scalable.”

It’s not only blockchain experts that do not support Facebook’s entry into the crypto world and even marketing Libra as a cryptocurrency. CNBC’s Joe Kernen also made it very clear that they don’t know much about the nature of Bitcoin but they immediately saw that Facebook’s project is technically not a cryptocurrency in the sense that most of the people use.

As noted in the latest cryptocurrency news, Coin Center also addressed the regulation. The researchers found out that while attempting to keep Libra on the right sight of the regulation, Facebook could become overly burdened. According to the report:

“A system without intermediaries is a system without intermediary risk, and thus no need for regulation aimed at safeguarding against the types of risk presented by intermediaries. It stands to reason, therefore, that a true cryptocurrency will involve fewer regulated parties than a traditional financial service.”