Libra co-creator and chief economist at Calibra, Christian Catalini, recently featured in Unchained Podcast to discuss details regarding Facebook’s involvement and the Libra Association’s roadmap. In doing so, Catalini explained the infrastructure’s motive behind distributing the association’s control over to every node within the ecosystem. He added,
“It is very rare for the tech company to make some of the choices that we were able to make on the protocol. There was an understanding within Facebook that a new of trust for digital platforms was really important to be developed.”
Moving forward, the entrepreneur stressed on Libra’s design and mentioned how it was “not meant to be walled garden or siloed solution.” Supporting Libra’s move towards sporting a centralized ecosystem, Catalini said that there are already existing fairly successful centralized payment solutions although Facebook has been “passing over (Libra’s) governance and control” to other members of the association. He added,
“With this new distributed governance structure, there’s a real commitment to interoperability, to ensuring that this is a network where you can have low switching costs, and consumers, merchants and other service providers across the globe will have more choice.”
As a conclusion to the topic, Catalini reiterated that innovating in a highly regulated industry such as finance, fitting exactly into the existing regulatory framework is not always possible. Facebook is now working on building the Libra infrastructure based on the constructive criticism from the U.S. regulators and the technical staff from central banks and the SEC. Catalini also mentioned that the ongoing innovation is carried out in tandem with the other 20 players within the Libra Association.
UAE notes surging crypto demand as country deliberates regulations
2019 has seen large-scale blockchain adoption. With China trying to beat the world to its central bank-backed digital currency, the United Arab Emirates [UAE] too, has begun drafting regulations. According to reports, UAE has been preparing for a rapid expansion in light of increasing demand for cryptocurrencies.
According to Google trends, the terms with an increased volume include, Bitcoin and cryptocurrency, along with other cryptos. However, apart from the search hike during the 2017-18 bull run, the trends for Bitcoin and cryptocurrency were at a rise in the UAE in 2019.
The search volume for Bitcoin remained quite high in the sub-regions of Umm Al Quwain, Ajman, and Ras al Khaimah. While ‘cryptocurrency’ search trends were high in Dubai, Abu Dhabi, and Fujairah.
Apart from the rising trend, the country has seen crypto transactions worth over $210 million, making it one of the top countries reporting digital asset transactions. At Dubai’s International Financial Centre the country registered 100 fintech firms, a three-fold growth since 2018.
In early 2019, two UAE startups raised almost $210.5 million in token sales, accounting for almost a quarter of the total capital amassed globally according to CoinSchedule in April.
According to reports, the increased trading has lured many institutional investors and may expand in Dubai mainly due to extensive inflows of institutional investors.
UAE had previously announced its Securities and Commodities Authority [SCA] had sought the opinion of financial industry partners for finalizing the draft. For which it invited various investors, brokers, financial analysts, researchers, media and other interested parties to review the draft.
SCA had also announced to introduce Initial Coin Offering [ICO] by the end of the first quarter, while it was working on the ICO token trading platform.