Struggling ever since the release of its whitepaper, Libra, Facebook’s cryptocurrency, is deviating from its destined route map. The level of scrutiny deployed by different governments of the world has introduced so much trouble that members of Libra Association are stepping out one by one.
In the latest, Visa, Mastercard, eBay and Stripe have decided to abandon Facebook’s crypto project and direct their time and efforts to other things. As regulators all over the world have been thrashing Libra, members of Libra Association had to figure out if they were to support Libra while not recording themselves in the good books of regulators..
A few days ago, two U.S. senators cautioned the members of the association to ponder over their affiliations with Libra. While denoting risks of Libra to the financial system and payments companies’ businesses, Senators Brian Schatz of Hawaii and Sherrod Brown of Ohio wrote letters to Visa, Mastercard and Stripe that said:
We urge you to carefully consider how your companies will manage these risks before proceeding.
Although they aren’t members of the Libra Association anymore, companies showed the utmost respect for Libra while wishing best for Facebook’s endeavor. Apart from showing its support and hinting about a possibility of rejoining the association in the future, Stripe said:
Stripe is supportive of projects that aim to make online commerce more accessible for people around the world. Libra has this potential. We will follow its progress closely and remain open to working with the Libra Association at a later stage.
Besides Stripe, Visa will also monitor the progress of Libra and its relations with regulators before deciding about its reunion with Libra Association. In this regard, Visa particularly said:
….Ultimate decision will be determined by a number of factors, including the Association’s ability to fully satisfy all requisite regulatory expectations.
Due to extreme criticism by regulators, joining hands with Libra became questionable for the members of Libra Association. A few days ago, another member Paypal was also wondering over its decision to be a part of Libra. As feared at that time, Paypal’s move opened the exit door for several other companies who were double-minded or had doubts about Libra.
Although it’s not easy to digest, it’s true that Libra Association didn’t have any official members. Despite promising support and vowing to be a member of Libra Association, companies were required to sign a charter agreement, scheduled for the upcoming Monday, before becoming a member.
As per a spokesman representing Libra, the Monday meeting planned will take place in Geneva and official members will be announced after charter is signed by the members.
Up till now, Libra has received a very harsh treatment by regulators. As Facebook has a userbase of billions, its project is capable of impacting the lives of masses. If space isn’t regulated efficiently, there’s a risk that Libra could bring more disadvantages than benefits.
However, due to the way things had been going against Libra, Ripple CEO Brad Garlinghouse doesn’t see project launching before 2023. He said:
I would bet that Libra… let’s say, by the end of 2022, I think Libra will not have launched.
Let’s see how Facebook manages to keep other members on board while simultaneously dealing with regulators and governments.