David Marcus points out that Bitcoin “is not really a great medium of exchange due to its volatility” and compares it to Libra.
Although different opinions about Bitcoin have emerged, it has not been as discredited in an “official way” as has been the new currency of Facebook, Libra. Libra CEO David Marcus highlights his vision of the mother of cryptocurrencies and compares it to his project.
Marcus made it clear that he does not see Bitcoin as a form of currency, because in his opinion it is digital gold. He points out that precisely why he has not aroused so much fear of regulators.
As reported by Bitcoinist, Marcus made these comments yesterday at the New York Times Business Book Conference in the Big Apple.
In the words of Marcus:
“It’s really not a great medium of exchange due to its volatility.”
He also noted that he sees Bitcoin as digital gold because it can be preserved as an investment just as people do with real gold, but its volatility means that it is not the best option for people who need to send remittances across borders, he told CNBC.
He added that a key reason why Bitcoin has not been regulated out of existence is because it is not perceived as a medium of exchange.
“It is an investment class not correlated with the rest of the market. Why feel threatened by that?”
Bitcoin and Libra comparisons
Marcus stressed that the currency proposed by Facebook would be linked to fiat currencies such as the euro and the US dollar, which will allow it to remain stable.
However, Libra has had serious criticism from governments and institutions around the world, starting with the United States Congress itself. Marcus answered a question about the current state of Libra, due to so much questioning, and acknowledged that all this will generate some delay in the project.
Answering a question about how they expected things to go, the CEO acknowledged that he knew there would be some setback. Also he said:
“I think it was to be expected and for several reasons. One is understanding that it is not designed in a trivial way. It takes a little time to really analyze the separation between the Libra Association, which we no longer control, Calibra, the wallet, which is a subsidiary of Facebook, and Facebook itself, and also the fact that this was designed more to operate as a payment system that allows people to have access to modern financial services and digital money, not really as a thing to dominate the world.”
Marcus also responded that if he had to do things differently, he would emphasize the benefits of creating a new infrastructure to move money around the world for the people who need it most. Without naming anyone in particular, he said that the idea of creating “money” inspires many people to talk about it.