IBM and Facebook Talk Libra
International Business Machines (IBM) General Manager for Blockchain Services revealed that his department would consider working alongside Facebook with Libra. Jason Kelly noted that his department is looking to collaborate across multiple sub-industries in the blockchain space, especially Facebook’s Stable Coin. Kelly, in his interview with CNBC, stated: “Our clients are ready to work with Facebook, and we’re ready to work with all of them to bring it together.”
When speaking with reporters, Jason noted that IBM’s Blockchain Firm had had difficulties distinguishing the differences between tokenized assets and cryptocurrencies because of the digitally issued stock ledgers. However, by working with Facebook’s Libra Subsidiary, IBM could resolve these difficulties while also helping the social media giant bring more legitimacy to this new blockchain tech. Facebook is following the same premise that IBM did two years ago by creating blockchain solutions that help data become organized on multiple networks. Subsequently, this creates a new level of transparency, which doesn’t solve the issues Facebook faces publicly against governing bodies.
The Libra Association
There have been countless industry insiders that have pointed out the similarities with Facebook’s Libra and IBM’s Bitcoin, meaning that Libra will be connected to a basket of cryptocurrencies. Many estimate this has been down on purpose to cate to the Libra Association. This association comprises of Facebook, Mastercard, Visa, Uber, Paypal and many others. Working with Facebook would mean that IBM joining the Libra Association.
Considering that finance legislators in the United States, Europe, Asia, Australia and the Middle East have all expressed their substantial concerns on Libra; it would be foolish for IBM to join Facebook’s Libra Association. It would propose severe threats against their business structure in the European Union, with analysts anticipating anybody a part of the Libra Association could be disbarred from legally operating in the European Union. The United States has been slightly more lenient towards the idea of digital currency but still haven’t provided their full approval.
Jason Kelly finished his interview by stating: “We talk about Libra and people say it’s just another crypto. Set crypto aside and talk about tokenization, because that’s what we’re talking about. To have 100 members at launch, we look forward to continuing to build diverse partnerships.”