According to report by The Wall Street Journal, some Visa, MasterCard and other top financial companies may reconsider their stance on Libra in terms of participation. It’s no longer news that the latter is Facebook’s new cryptocurrency project.
On October 14, representatives from those companies are expected to meet in Geneva. They should review a charter for the Libra Association and appoint a board of directors.
We knew that the supporters of Libra funds do not want to be subject to regulatory review. So they refused Facebook’s request to publicly support the project. The Libra Association’s policy executives, composed of more than 20 supporters of the cryptocurrency, met in Washington last Thursday. According to Bloomberg News, PayPal and Stripe are yet to decide on official approval of this project.
Apart from that, last week, Reuters reported that Facebook may delay the launch of Libra to address regulatory concerns around the world. Facebook previously announced plans to launch digital currency in June 2020 in collaboration with other members of the Libra Association. But not everything goes according to the plan.
Before now, we reported that Facebook met with Central bank officials to discuss its new cryptocurrency. On September 16, 26 global central bank officials, including the US Federal Reserve and the Bank of England were attending the meeting. But most of them refused to approve this project, saying it poses a number of serious risks related to public policy priorities. That’s why France, Germany, and other countries said they will never approve this project if it doesn’t change.
When Facebook unveiled the Libra project in June, the company said this cryptocurrency could change the entire financial system, giving consumers a new way to move money across borders. But there have been (and still are) project backers that think this is a payments-network effort to profit on Facebook’s 2.4 billion monthly active users.