Libra is deciding to soldier on despite both severe backlashes from governing bodies and seven companies pulling out of the Libra Association. It’s an admirable move, and here’s hoping it works for them, but Facebook’s new cryptocurrency is facing a lot of scrutinies.
The Libra Association, a group of formerly 28 founding companies, has been reduced to 21. However, those remaining have finally come together for the first time. They met on Monday in Geneva to discuss the future of their cryptocurrency.
A spokesman told the public that they believed the currency be launched next year in 2020, as was initially planned. However, that would only happen if Libra achieved regulatory approval, according to the spokesman.
This happened just days after the G7 group of nations, a group of the most economically powerful countries in the world, warned that Libra holds the potential to disrupt the global financial order. The G7 reckons that’s a bad thing.
This was followed by a letter to the payment providers within the Libra Foundation. This letter, written by senators Sherrod Brown and Brian Schatz, was sent on the 8th of October. It warned of extremely high levels of scrutiny that will happen to the payment providers, not only on Libra but across all payment activities.
The Libra Associate shot back, sending Spokesman Dante Disparte to criticize the power move these two senators did. He stated that such actions stifle the private market sector’s innovation.
He continued, stating in a phone call that, at some level, it staggers the regulatory and law-making procedures of a free market economy. He considered the interference to have created a troublesome precedent for private sector innovation.
Another One Drops Out
In light of the increased pressure against Libra, many companies that initially joined Libra have subsequently decided that it was too much for them to handle. Mastercard, Visa, Paypal, Stripe, Mercado Pago, and eBay have all jumped ship, but alas, they weren’t the last. Monday morning, Booking Holdings, the firm in charge of Booking.com, had decided to pull out as well.
With that, Libra has lost a quarter of its founding members since they founded the Libra Association. Luckily, the remaining 21 have all reaffirmed their commitment to Libra during the Geneva meeting. The rideshare giants Lyft and Uber, the venture capital firms Union Square Ventures and Andreessen Horowitz, music streaming giant Spotify, as well as the sales and services arm of telecommunications giant Vodafone.
PayU, the only remaining online payment processor within the founding members, has also reaffirmed their commitment. This could very possibly be due to the lack of US senators threatening to skin them open to find anything at fault. Or it could have nothing to do with it.
Regardless, Libra moving forward is a bold move. A move that’s hopefully rewarded.