Who is Next to ditch the Facebook’s Libra association after Visa, MasterCard, and Stripe folowed eBay and Paypal
I will tell you about the Libra project today. It is the controversial Facebook proposes international currency. Facebook announced the project through a white paper publication disclosed by David Marcus, the Head of Blockchain of the Libra project. Although before the launch on June 18, there has been unconfirmed news of a Facebook Blockchain. The result of the news is a stable coin that hopes to pursue an international currency standard.
You may be wondering if Libra association is a corporation or a company, yes, it is a corporation. The association comprises 28 founding members called the Libra association. Meanwhile, this article is not discussing the complications and purpose of the Libra project, nor to discuss the many pressures facing Facebook Inc since the announcement, but I will be brief. However, you should know that the association constitutes a group of top financial service providers like Paypal, MasterCard, eBay, Visa, Stripe, etc.
Criticisms graced the launch of the Facebook Libra cryptocurrency, which made partners start withdrawing from the association. Several debates and authorities have spoken to challenge the legitimacy of establishing a sovereign currency by a non-sovereign entity. I wonder that the Libra project doesn’t certify the rudiments of a Blockchain project; hence, the much controversies.
You must know that it has not been easy for Facebook in the Libra project as they try hard to lobby and convince authorities and regulatory bodies. The pressure on Facebook is too harsh for a corporation to handle. Hence, members kept pulling out. Let me state it clearly here; it is only a leaderless model, and a decentralized model like Bitcoin can survive the kind of pressure facing Facebook, easily.
According to Schartz and Brown, US senators in a publication, who said: “Facebook is trying to enjoy the benefits of engaging in financial services without the regulation?” That is one of the glaring cause of the pressure. Opinions have it that without regulations, Facebook’s Libra project is making money laundering and terror funding easy. Since June 18, several parties of the Libra association has pulled out.
Who Opted Out First of Facebook’s Libra Association?
PayPal became the first to ditch the association on October 4 and followed by Visa, MasterCard, Stripe, and eBay. The latter happened on October 11. I infer that the disassociation of the groups is because of the uncertainties in the project’s regulatory framework. This is due to the failure of the original white paper to discuss how they hope to avert the challenges of regulations, but I believe the upcoming meeting of the association next week in Geneva will try to address the same.
The outcome of the meeting will tell us who is remaining with Facebook, who is withdrawing, and even whether Facebook is continuing or quitting the intention to establish the Facebook Libra stable coin.
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