Libra Co-Creator Warns: Corporate-Led Blockchains Threaten Decentralization

Libra Co-Creator Warns Corporate-Led Blockchains Risk Undermining Decentralization Christian Catalini, co-creator of Facebook's Libra project, expressed concerns on Friday that Stripe's Tempo and Circle's Arc may be compromising the decentralized vision of cryptocurrencies. According to Catalini, these corporate-led blockchains risk rebuilding old financial hierarchies under new leadership. Decentralization at Risk Catalini stated that Tempo and Arc "risk repeating the compromises" made by Libra under regulatory pressure. He warned that while these projects may succeed commercially, they would do so at the cost of cryptocurrency's core principle: decentralization. "Tempo is a referendum on the ghost of Libra," Catalini said, suggesting that the crypto community's dream of decentralization might be giving way to pragmatic centralization. Background and Context Launched in 2019, Libra was Meta's ambitious attempt to create a global digital currency backed by a basket of stable assets. The project aimed to make payments as seamless as messaging but faced intense regulatory scrutiny. In response, the project underwent significant changes, gutting its original open, self-custodial design. Additional Perspectives Industry experts agree that corporate-led blockchains like Tempo and Arc may be more appealing to traditional financial institutions due to their perceived stability and security. However, this shift towards centralization raises concerns about the long-term viability of decentralized finance (DeFi) and the potential for regulatory overreach. Current Status and Next Developments The development of Tempo and Arc continues, with Stripe and Circle investing heavily in these projects. While they may achieve commercial success, the implications of their centralized approach on the crypto community's decentralization dream remain uncertain. As the industry navigates this shift, experts will be watching closely to see whether these corporate-led blockchains can balance commercial viability with decentralized principles. Quotes "Tempo is a referendum on the ghost of Libra," Christian Catalini said. "These projects risk repeating the compromises made by Libra under regulatory pressure," Catalini warned. Sources Christian Catalini, co-creator of Facebook's Libra project Stripe and Circle representatives *Reporting by Coindesk.*