There has been growing skepticism about the launch of the Facebook Libra project. For instance, some nations such as France and Germany have already made it clear they will not allow the project to launch in their nations under any conditions. This is a challenge for Facebook and it could seriously hamper its operations around the world.
National Crypto Projects
To save the Facebook Libra from total collapse, Facebook has said it is open to launching national cryptocurrencies based on a nation’s national currency. This would be similar to the Binance Venus project. David Marcus, who is the head of the Facebook Libra association, revealed this new proposal. According to a Bloomberg report, the project could have various stablecoins for various fiat currencies such as the Euro, USD, Sterling Pound, and many others.
The coins would essentially be the tokenized versions of national fiat currencies. However, he added that this was not the preferred option for the Libra Association. He added that what the association cared most was about making its mission a reality.
Facebook Libra Member Withdrawals
The project faced a major setback when its payment partners pulled out of the association. This presents a problem for the project since those partners would have played an important role in rolling out the Libra cryptocurrency.
However, most of those that left the project said they would be open to rejoining it in the future. Seven members have left the project thus far. The reason for their departure appears to be due to growing regulatory pressure. Since most of the companies operate in a highly-regulated environment, they were afraid that participating in the project could leave them exposed to lawsuits by regulators. It could also affect their good standing with authorities, which usually comes with its benefits.
Policymakers around the world have accused Facebook of trying to create a parallel system of finance. Besides that, they are afraid that Facebook could mishandle user data, as it has already done in the past. Additionally, they are not sure that Facebook Libra will be able to prevent criminals from using Libra for money laundering.
Recently, G20 finance ministers agreed that they would place tough regulatory measures on cryptocurrencies. They added that stablecoins should be put on hold until all regulatory risks had been adequately addressed.
Marcus is still optimistic that the project will launch. He is aiming to have the project launched in June 2020. However, he has admitted that they might miss this target due to various regulatory hurdles globally. Besides that, the departure of key members from the association means that the project will have to reorganize itself and find new partners to fill the gaps that were left by the departed members.
The Libra Association has been adamant that the project will not launch without addressing all regulatory concerns. As a result, they have been open to holding discussions with lawmakers. For instance, Facebook Libra officials have already testified before Congress several times. However, they have yet to convince lawmakers.
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