ConsenSys fintech exec says Libra could become a 'developer magnet' if the stablecoin project takes off


Lex Sokolin is worried that Libra could be detrimental to open-source crypto development in the long-run.

Sokolin, ConsenSys’s co-leader for fintech and DeFi, recently sat down with The Block’s Frank Chaparro and Ryan Todd for an episode of The Scoop. Conversation topics ranged from how Libra could be a tool that governments use to “fight back” against bitcoin, to stablecoin business models, to the latest developments at ConsenSys. 

But one thing that Sokolin seemed particularly passionate about was his concern that Libra might become a “developer magnet” that wipes out the open-source decentralized software development scene (read: Ethereum). “Today there’s nowhere else, really, to develop decentralized software other than Ethereum,” he said. 

Libra could change that because developers might jump at the chance to work on a platform that has “100,000x more in assets and users than in today’s networks,” Sokolin said. And if it ever goes live it will probably do so with an air of legitimacy in DC.

“If Congress says, ‘We are comfortable with Libra because we had all this input on it from a regulatory perspective, and that’s where we are going to trial our CBDC'—and then in addition to that you have the massive tech footprint of Silicon Valley, so you have billions of users potentially—that’s just going to be a huge developer suck,” Sokolin warned.

Listen to the full episode here:

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC