david marcus - Pwim.Net

Calibra Head David Marcus Declares Libra as the Most Secure Payment Network

David Marcus, Head of Calibra, the digital wallet for Facebook’s Libra stablecoin explained at Money 20/20 conference in Las Vegas about how the network aims to transform the traditional payments industry.

Marcus claimed that anti-money laundering (AML) standards of Libra will be more substantial and secure than any other payment network. He added:

“We also designed Libra in such a way that any wallet can participate as long as KYC and AML requirements are met. It was designed to be competitive, but we still need to earn people’s trust over time to use Calibra.”

Marcus also stated that AML is an important factor to be addressed, saying that the efficacy of sanction enforcing can be much higher on Libra than other payments networks due to its digital to digital nature rather than relying on cash.

In light of the recent G7 report, Marcus disagrees with the fact opinion that stablecoins pose threats to national monetary policies. He noted tha stablecoins would only be a threat if stablecoins involved money creation, which Libra does not. “With Libra, there is no money creation; we have a full one to one back reserve, there is no money creation whatsoever,” said Marcus.

In regards to concern about Facebook’s previous data breach scandal involving Cambridge Analytica, Marcus reiterated that there is a “data separation between Facebook and Libra.” Marcus concluded: “Moving money around the world with WhatsApp and Messenger is what will bring real value on a day to day basis.”

Image via the Financial Times

Facebook’s Libra Co-Creator Thinks Bitcoin is Not a Currency

Head of Libra and Vice President of Facebook Messaging has his say on Libra’s next steps and Bitcoin. Speaking as a guest on CNBC, David Marcus initially talked about Libra setbacks, stating that Libra, Calibra, and Facebook would need time to allow digital money access and services to form for users around the world.

Anyone with a smartphone can make calls and texts for free, although the same thing has not happened with finance. Rich or poor, internet services are the same price, yet banking services are actually more expensive for the poor.

Marcus further discussed Banking and regulation, adding these conversations will be key with Libra development ramping up and adding in more advancement starting soon.

Cross border transactions on average cost 7%, take 3 working days to process and then users must approach a pickup location to receive the exchanged money. This leads to a lot of crime and safety problems during collection. Libra aims to be a settlement payment tool for these exact problems. Cutting costs and lowering borders of access for everyone around the world.

Regarding Bitcoin, Marcus had these thoughts on it as a currency: “I don’t think of it as a currency, due to volatility I see it more as digital gold. It is not a good medium of exchange.”

As to why it has survived regulation he added: “Bitcoin has survived 11 years and been through a lot. It has not been regulated into oblivion because it is not seen as a medium of exchange. If it is decorrelated from the rest of the market, then there is no threat.”

Libra continues to push forward as they hire more staff, communicate with governments and development their platforms with other founding members in the Association. In spite of all Libra’s problems, there are no signs of a slowdown yet.

Image via Blockchain Technologies

Novi Digital Wallet Ready to Show on the Market, Facebook’s David Marcus Says

Facebook Inc has announced that its much-awaited digital wallet Novi is ready to go to the market.

In a blog post published on Medium.com on August 18, David Marcus, the head of Facebook Financial, wrote that the Novi wallet is set to be integrated into the Facebook app. Marcus expressed confidence in Novi’s ability to succeed despite facing more than two years of regulatory hurdles.

“Novi is ready to come to market. It’s regulated, and we’re confident in our operational ability to exceed the high standards of compliance that will be demanded of us.”

Marcus, however, did not say a specific time regarding when the launch will take place other than saying that the wallet is ready to go.

Marcus described the Novi wallet as the best way to transfer money easily between people. He stated that the digital payment system would be a “global, open, interoperable, near real-time, cheap” and a “compliant global protocol for money.” He further wrote that the system would “enable people, creators, and businesses to move money around seamlessly and to innovate via programmable money.”

Marcus mentioned that Novi is a regulated wallet, stating that the payment system can exceed the high standards of compliance that could be required.

“We feel that it’s unreasonable to delay delivering the benefits of cheaper, interoperable, more accessible digital payments,” he said.

Marcus talked about why the Diem Association moved its headquarters from Switzerland to the US, saying that blowback from authorities was “profoundly un-American.”

Diem’s Regulatory Struggles

In December 2020, Facebook rebranded its Libra cryptocurrency to Diem. During that time, Marcus expected that the Diem cryptocurrency and the social networking firm’s wallet Novi would launch in 2021.

Since the announcement in June 2019, Facebook’s cryptocurrency project has been facing much criticism from regulators, an issue that forced the firm to scale down its ambitions and initiate a rebrand.

The project initially faced intense resistance partly because it emerged out of Facebook and somewhat because its ambitious aims appeared to threaten traditional government-run financial systems.

Facebook renamed its Libra cryptocurrency as Diem to demonstrate that the project has “organisational independence” as it attempts to obtain regulatory approvals for launch. The independent organisation (Libra association), which runs the project, rebranded itself as the Diem association in April this year.

However, the scope of the Diem Association has shrunk significantly because major partners pulled out from the plan after releasing that the project faced controversies and regulatory hurdles from lawmakers across the world.

Initially, one Libra coin was supposed to be backed by a basket of currencies. But regulators raised concerns regarding Libra’s impact on financial stability on money laundering and data privacy issues.

In April, the Diem Association scaled back its initial plans and stated that it would offer stable coins backed by just one country’s currency rather than a single coin backed by several currencies.

Facebook’s Head of Crypto David Marcus Is Leaving the Company after 7 Years

David Marcus, the head of cryptocurrency projects at Meta Platform Inc (formerly Facebook), announced on Tuesday, November 30, that he will be departing the firm by the end of the year to begin working on something new.

Marcus made the announcement via Facebook social media platform, saying: “After a fulfilling seven years at Meta, I’ve made the difficult decision to step down and leave the company at the end of this year.”

Marcus signalled that he might soon be beginning his own venture. “While there’s still so much to do right on the heels of launching Novi — and I remain as passionate as ever about the need for change in our payments and financial systems — my entrepreneurial DNA has been nudging me for too many mornings in a row to continue ignoring it,” he wrote in a tweet thread.

Meanwhile, Facebook founder CEO Mark Zuckerberg commented on Marcus’ post, stating, “I’ve learned so much working with you, and I’m so grateful for everything you’ve done for this place.”

Zuckerberg further said: “We wouldn’t have taken such a big swing at Diem without your leadership, and I’m grateful you’ve made Meta a place where we make those big bets. You’ve built a great team, and while I’ll miss working with you, I’m looking forward to working with Stephane to lead the team going forward.”

Along with Marcus’s departure, former PayPal head and Upwork CEO Stephine Kasriel, who served as the head of products for Novi digital wallet at Facebook, will be taking over Marcus’s role at the top of the organization.

Following Marcus’ announcement, the last check shows that Facebook’s shares were down 3.3% to $326.72.

Facebook Digital Currency’s Uncertain Future

Marcus, who joined Facebook in 2014 after two years as president of PayPal, is the head of F2 (Facebook Financial) and oversees all payments and financial services products and experiences across the firm. He is also the co-creator of the yet to be launched Facebook’s Diem digital currency.

Marcus has long been a significant figure in the cryptocurrency community since his days as president of PayPal. He was among the first crypto tech leaders to embrace Bitcoin and other crypto assets. In the past, he served as a board member of Coinbase.

He has been overseeing Facebook’s efforts to develop a digital currency and wallet, and his departure is another setback for the unit.

Marcus’ tenure leading commitments to build a digital currency at Facebook has been faced with significant obstacles as the company’s backed-crypto project Diem has witnessed widespread industry and regulatory resistance that has led the firm to scale back the manner in which it commits its new efforts on the crypto space.

Formerly known as Libra, Facebook’s vision for a digital currency was faced with severe opposition from regulators when it was first announced in June 2019. Politicians and central bankers were worried that the digital currency could undermine sovereign currencies such as the US dollar, infringe on users’ privacy, and enable money laundering.

Facebook has since lost many key backers, including PayPal, Mastercard, and Visa, and suffered a number of prominent executive departures.

Marcus’s departure marks another major exit from a long-time Facebook executive, Facebook CTO Mike Schroepfer, who announced in September that he was stepping down from this role after working at the company for 13 years.

Diem had initially proposed a universal currency to a basket of major currencies and government debt. But after the company faced severe regulatory opposition, it switched its focus on multiple stablecoins backed one-to-one by different currencies and one multi-currency coin.

Diem is currently planning to issue a US dollar-backed stablecoin known as Diem USD. Earlier this year, the firm unveiled a small pilot of its crypto wallet, Novi allowing users in Guatemala and the US to use the Novi wallet app to exchange stablecoin cryptocurrencies.

Image source: Bussinessinsider.com