Stripe’s Tempo Blockchain Viewed as Test for Libra’s Legacy
Christian Catalini, co-creator of Facebook’s Libra project, expressed concerns that Stripe's Tempo and Circle's Arc could achieve commercial success but compromise the ideals of decentralization in cryptocurrency.
Key points include:
- Libra, launched in 2019 and later renamed Diem, was aimed at creating a global digital currency but faced regulatory backlash leading to its closure in 2022.
- Catalini highlighted the project's early compromises, particularly the abandonment of non-custodial wallets due to regulatory demands for intermediaries.
- He noted that today’s open networks are developing compliance tools better suited for blockchain than traditional frameworks, contrasting with Libra's forced centralization.
- Catalini criticized corporate-led projects like Arc and Tempo for potentially replicating existing financial systems, placing fintech companies in positions of power rather than disrupting them.
- Arc, launched by Circle, is designed as a Layer-1 network using USDC for fees, integrating features for cross-border payments and programmable transactions.
- Tempo, introduced by Stripe, claims to handle over 100,000 transactions per second and is EVM-compatible, targeting mainstream stablecoin payments.
- Catalini warned these initiatives might lead to competing financial systems instead of achieving the borderless goals originally envisioned in crypto.
- He suggested the future success of Tempo could indicate that the failure of Libra stemmed from timing issues rather than flawed design.