Developments facebook libra

25 Oct 2019 | Blockchain, DeFi Capital, Investing

Anyone who has followed the news lately might have heard about it: there’s allot going on about Facebooks Libra. What started as an idealistic project with ambitious goals now seems to end in a discussion about the power and influence of big tech.

What is Libra?

Libra is an initiative by Facebook in collaboration with large finance and tech companies to create a worldwide financial payment system. This payment system is based on blockchain technology. Libra’s vision is one that resonates well with the vision of DeFi Capital. Libra is supposed to stand for a decentralized payment system which allows people more freedom and autonomy about their wealth and this is exactly what we are about. Libra’s whitepaper has many examples about this vision, for example:

‘’We believe that many more people should have access to financial services and to cheap capital.’’

Now there’s about a third of the world population that does not have access to financial services. Allowing this large group access to financial infrastructure like Libra, creates the opportunity for financial progress in areas that need it the most. It seems an idealistic and worthwhile endeavor to be of service to this group of people.

Latest developments about Libra

Ever since the announcement of Libra in June this year there’s a lot of controversy about it. Among others, central banks are afraid it might be a risk for financial stability. With the Cambridge Analytica scandal fresh in our minds, the French government said that it will actively block Libra’s development in Europe citing risks for consumers and monetary sovereignty.

After these announcements Libra’s downward spiral went in overdrive. Politicians, central banks and especially financial regulators are experiencing extreme difficulty to positively look at Facebooks latest developments. First the financial companies backed out of their cooperation, after that even travel giant booking.com. The companies still collaborating with Libra are mainly tech companies like Lyft and Uber.

Our opinion

When we read Libra’s whitepaper, we had some very mixed ideas about it. On the one hand it seemed like a great confirmation of DeFi Capital’s vision: a decentralized financial system. A system that provides access to financial services based on blockchain technology.

However, on the other hand we’re experiencing doubts about Facebook being the one leading this world currency initiative. A company that does not seem bothered with user’s privacy also allowing full access to user’s financial traffic does not feel right. Also, the claim that the network would be decentralized is only marginally true. Is paying 10 million for access to one of 21 servers of Libra really the idea of decentralization? Not if you ask us.

The end of a decentralized financial system?

It’s definitely not the end. According to us blockchain technology is all about financial innovation. Facebook has shown us through Libra that in the near future anyone can create their own currency. The infrastructure that allows for this is being built as we speak. This is exactly what DeFi Capital is investing in. We want to actively participate, invest and be a part of the realization of decentralized finance.

To learn more about our unique strategy.

Most recent stories

Don’t defy DeFi

Don’t defy DeFi

Innovating our way to the future Don't defy DeFi, innovation is all we got. Innovation is our way of changing the world around us. Technology is at the forefront of human innovation, often threading its way into unregulated spaces. It’s very hard for technology to...

read more
Understanding Bitcoin

Understanding Bitcoin

Understanding Bitcoin through the history of moneyIf you are reading this, you have obviously heard of Bitcoin. Hearing about it wasn’t so difficult but understanding it can be a bit overwhelming in the beginning. Don’t worry, it’s not you, it’s Bitcoin. It is...

read more
MakerDAO investment review

MakerDAO investment review

We’re very happy to present and share the first investment review. Ever since the launch of this company we’ve had the ambition to contribute to the development of Decentralized Finance in multiple ways. Allowing investors and interested parties entry into this...

read more
DeFi Capital advisory board

DeFi Capital advisory board

DeFi Capital is proud to introduce our advisory board. Each of them brings an ocean of experience and knowledge into the company that we can tap into. It was important for us to have advisors that have the same vision for the future of finance and I can wholeheartedly...

read more
Interview Federico Nitidi

Interview Federico Nitidi

Introduction interview with Federico Nitidi, member of the advisory board of DeFi Capital. Q: What is your background?A: Born and raised in the Italian Alps, for the past 10 years I’ve lived and done business across Europe, the US, and Israel. Currently, I am the...

read more
Interview Mariano Conti

Interview Mariano Conti

Q: What is your background?A: I was born in Argentina, but moved to Mexico at an early age. There I became a Computer Systems Engineer. I’ve been in love with computers all my life, and have been lucky to witness the Web2.0 revolution and now actively participating in...

read more
Interview Iulian Circo

Interview Iulian Circo

Introduction interview with Iulian Circo, member of the advisory board of DeFi Capital.Q: What is your background?A: I have a very colorful background. I have started my career in the late 90s and spent almost a decade doing field-based, humanitarian work all over the...

read more
Becoming financially autonomous

Becoming financially autonomous

A new revolution has started in the world of finance. It is time to become financially autonomous. We have become used to others, like banks, brokerages, and institutions managing and holding our wealth for us. This originated as a service that was supposed to relieve...

read more
Expanding the team and restating our vision

Expanding the team and restating our vision

Amadeo Brands We’re very excited to share that Amadeo Brands has joined the team of DeFi Capital as a partner and CTO. The most welcome addition of Amadeo to the team gives us an ocean of experience in IT, blockchain programming, and entrepreneurship. With Amadeo on...

read more