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Facebook’s Libra Association Forms New Board

Facebook’s idea of bringing the new form of global money through its Libra association is going across a few changes. The company has formed a consortium’s executive team, which announced in its inaugural meeting on Oct 14, Geneva, Switzerland, reported by Reuters.

As per the information, Libra Association the governing body of its planned stablecoin Libra, reasserted about its intention of introducing the proposed payments-oriented system, no matter how long it would take to settle the regulatory jurisdiction. 

During a meeting, the names of five board members and 21 members of the consortium have announced. These are Calibra CEO and former Facebook blockchain lead and ex-president of PayPal, David Marcus; Katie Haun, a general partner with Andreessen Horowitz; Wences Cesares, CEO of Xapo; Patrick Ellis, general counsel at PayU; and Matthew Davie, chief strategy officer of Kiva (501 non-profit organization).

The leadership roles in the association’s executive team would be performed by Bertrand Perez, Ex- Paypal Senior Director Dante Disparte ,  and Kurt Hemecker. 

Further, the description displays that special consortium and board members agreed to the terms and conditions of the association which, according to Swiss law, must communicate the structure of the organization. Meaning, maximum major decisions or selection of any new member would rest on the majority of the ruling council and it must pass by a two-thirds majority of the 21 members. 

In the meeting, few new changes were shown by Facebook, apart from the internal processes and joining of 100 companies into its consortium which the social media giant declared in June while introducing Libra white paper

Organizations Quit Facebook’s Libra

The owner of Priceline (Booking Holdings), Kayak (the fare aggregator and travel metasearch engine operator), agoda.com, and Booking.com have dropped their consent to continue with Facebook led Libra initiative. The departure also includes the names of the global players like payment settlement firms Visa Inc., Mastercard, Mercado Pago, EBay Inc., fintech startup Stripe.

Reportedly, the reason for leaving the backers of Libra cryptocurrency project is the governmental and political pressure.  

While reasoning out the withdrawals of the multinationals firms which left Libra association in the midst, Steven Mnuchin, the United States Treasury Secretary expresses that the Libra project is not “up to the par” with the American Anti-Money Laundering standards and other compliance issues.

Reuters cited that Hoofddorp, Netherlands-based PayU is the single fintech payment firm that is now left in the Libra Association due to its non-operating structure in the United States, many areas of Africa, the Middle East, and Canada where the laws are not stringent.

Further, few more companies are still backing the association and did not withdraw their names. These are Vodafone Group Plc, British telecommunications conglomerate; two ridesharing companies- Uber Technologies Inc and Lyft Inc.

Regulators Intervention 

Earlier, David Marcus, testified before the U.S. House Financial Services along with the Senate Banking Committee to prove the legitimacy of the forthcoming Libra stable digital asset. 

Now, Facebook’s founder and CEO Mark Zuckerberg’s has to testify before the House of Representatives Financial Services Committee at a hearing entitled “An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors” on Oct 23. In a press release, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee, announced on Oct 9. 

In July, an official letter sent to Facebook by Waters and other committee Constitutionalists, asking an immediate moratorium on the implementation of proposed cryptocurrency Libra and digital wallet Calibra, until the complete justification concludes.

Warren Davidson (R), United States Rep. mentioned that Facebook instead of creating a new cryptocurrency Libra should add Bitcoin (BTC) to its Calibra wallet. In an interview to the Noded Bitcoin podcast on Oct. 11, the congressman cited it a “way better idea.” 

Delay in Facebook’s Libra Project

Purportedly, the Libra stablecoin would be backed by a basket of various fiat currencies, comprised of the U.S. dollar (50 percent), the euro (18 percent), the yen (14 percent), the British pound (11 percent) and the Singapore dollar (7 percent), are among others.

The Libra stablecoin was supposed to be launched in 2020. However, Zuckerberg’s ongoing comments concerning the project indicate that Facebook lovers and cryptocurrency aficionados may have to wait for a little longer, possibly for a year or more. Zuckerberg overtly told the reason for the delay is due to the federal regulatory laws and their intervention not because of any internal technical delay.  

Interestingly, Mnuchin clearly said that the Libra project would possibly go through the difficult phase in facing conducts from the U.S. Financial Crimes Enforcement Network, if the Department of Treasury does not find it compliant with the laws, at the time of its launch.

Image by Gerd Altmann from Pixabay 

#Bitcoin Regulations News #Altcoin News #Cryptocurrencies #Regulators #Government #Facebook #Mark Zuckerberg #Libra #Calibra #USA #FinTech #Geneva #Switzerland #Congress # David Marcus #Maxine Waters