Libra Closed Ecosystem
The list of problems regarding Facebook’s Libra Coin is growing every month. The latest concern comes from an executive with Ripple, who has gone on to the record, believing that the social media firms digital currency has a significant flaw. This flaw is a walled garden, which is a specific term for Libra Closed Ecosystem. A coalition of entities runs these systems. Operating a walled garden cryptocurrency means greater control over the applications provided and software enacted. Unfortunately, this won’t benefit traders in the long run. Mark Treacher, Senior Vice President of Ripple, publicly went on the record with CNBC on Friday, September 27, 2019.
The closed ecosystem created by Facebook is managed by Calibra, a subsidiary for the social media giant that’s based out of Switzerland. Publicly known as the Libra Association, members include corporations like PayPal and Visa. By using the Libra Reserve, they’ll potentially provide 2.5 Billion people with coins worldwide. There’s a small chance that the Ripple Executive could be worried about the upcoming competition, considering that his exchange services some of the most extensive banking institutions worldwide. Furthermore, Ripple was the original backer behind Bitcoin. The potential for Libra to outrival Bitcoin is still relevant, which could mean a switch in coin popularity across the industry. This ultimately would affect Ripple, but the comments made by Mark Treacher weren’t false and wholly substantiated.
Ripple has never managed a walled garden business format for its blockchain services. Yes, the exchange is achieved through a network but without perimeters that can create a monopolized effect. Otherwise, Ripple wouldn’t have considerable competition they do today. Regardless of the concerns regarding Libra, it caused numerous individuals to become aware of the blockchain space. Mark Treacher admitted that the educational growth relating to the cryptocurrency market had been positive.
Facebook Under Fire
Since Facebook first publicly announced their digital currency, they’ve been publicly scrutinized by governing authorities in financial markets worldwide. Global regulators have expressed their significant concerns, which has prompted numerous nations to block Libra before it arrives. Two significant countries include China and India. Ripple hasn’t ever had to worry about public scrutinization thanks to their well-managed exchange. Since 2017, Ripple has become the most popular trading exchange for Bitcoin and BTC.