Vice Chairman of the Libra Association: The core of Libra is the blockchain, not the cryptocurrency
Editor's Note: This article comes fromCointelegraph Chinese (ID: CointelegraphChina), Author: HELEN PARTZ, reprinted with authorization by Odaily.
Editor's Note: This article comes from
Cointelegraph Chinese (ID: CointelegraphChina)
, Author: HELEN PARTZ, reprinted with authorization by Odaily.
Despite current concerns that blockchain is not yet mature enough to usher in a new era of payments, central banks around the world are continually exploring the technology. Blockchain technology remains at the heart of Facebook's digital currency Libra, according to a senior project executive.
Since the release of the Libra white paper in June 2019, Libra Association Vice President Dante Disparte explained that the yet-to-be-launched stablecoin has relied on blockchain architecture.
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Blockchain unlocks payment network interoperability
In an April 28 interview with financial publication Central Bank, Demeter outlined some of the structural benefits of blockchain implementation. As part of the Blockchain-Driven Advantage, the executive outlined the technology's potential to drive payment technology interoperability. He said:
According to Demeter, the issue of interoperability is one of the biggest challenges facing global payment networks. “Because the technology doesn’t talk to each other, it usually takes years to get units to pay each other,” the executive noted.
Demeter continued:
“Without the blockchain at the core of Libra, and without the sharing of blockchain technology among association members running validating nodes, it will be difficult to have a digital wallet environment without lock-in effects where users are locked into Locked in to one provider or another."
Cointelegraph reached out to the Libra Association to learn more about how Libra plans to solve interoperability issues with the blockchain. The Libra Association had not yet responded by the time of publication.
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During the interview, Demeter also referred to a common narrative that cryptocurrencies are less important to innovation than blockchain technology.
Demeter says:
“Cryptocurrencies are not a critical aspect of innovation. The real breakthrough is creating the protocol level for value transfer. This is a huge contribution of Libra. Without blockchain at the core, it is very difficult for us to achieve what we want to achieve at the wallet and user level openness."
According to the executive, the Libra Association expects to launch Libra in the fourth quarter of 2020. By then, the project hopes to address major issues including governance, organization, and preparation for the transition from the testnet to the main environment.
