Libra Association’s seven founding members have quit in the middle of the increasing scrutiny by European and U.S. regulators. The project’s success seems uncertain as 7 out of 29 founding members of the Libra Association have withdrawn their support from administering the council for Facebook’s planned worldwide cryptocurrency. Stripe, eBay, MasterCard, Paypal, Mercado, and more backed out from Libra Association.
Forrester Vice President of Research Martha Bennett expressed via mail that Visa, PayPal, and all others have decided that they thought the best under such circumstances.
Bennett further added that beyond these concerns, compliance violations may also appear in the future.
Libra is To Go Live in 2020.
Head of policy and communications for The Libra Association, Dante Disparte added via an email that the council is not going to introduce the global payment system until concerns and questions by the regulators properly addressed. Disparte revealed that the mission of financial inclusion they have commenced is receiving broad global support. More than 1,500 entities have already shown their interest to join the association.
Research analysts and industry experts have shared their speculations that the Libra Association’s departures are the cause of cryptocurrency regulatory scrutiny. These departures are increasing as the people are speculative whether it may comply with know-your-customer (KYC) government rules or harm money-laundering efforts.
After their departures, leading payment software providers Stripe and eBay shared that they “support” or “respect” the Libra Association’s vision.
U.S. lawmakers (House Committee on Financial Services) have also raised their concerns that Libra Association might promote money-laundering or related activities. Other lawmakers asked Libra Association members to re-think about their support for the project.
To ease the ongoing U.S. regulatory concerns, Mark Zuckerberg will be testifying it before the House Financial Services Committee on 23 Oct 2019.
Libra will be backed by 1:1 real money unlike other cryptocurrency wallet such as Ethereum, Bitcoin, etc. David Marcus (Libra Co-creator) and Katie Haun (General Partner at Andreessen Horowitz) shared varied tweets for supporting every unit of Libra that exists.
However, the latest feed of departures has encouraged people to build their charts, who have moved out of the non-profit organization.