Libra’s backers show signs of nerves | Tech Wash

Libra’s backers show signs of nerves | Tech Wash

When Facebook announced
its ambitious new plans to create a cryptocurrency
earlier this year it did so with a lot of
fanfare and not much detail. The scheme, we were
told, could make it nearly free and almost
instantaneous to transfer money anywhere around the world. It could even, we were
told, bring millions of people without bank accounts
into the formal economy for the first time. But at the same time
Facebook told us they had not yet secured the
necessary regulatory approvals for the project. And nor had they finalised who
their other backers would be. Well, since then,
regulator after regulator has come forward to voice
concerns about the scheme. Many are worried that it
could allow criminals to use the platform to launder money. And some are worried
that it could threaten the global
dominance of the dollar. That could undermine US
monetary and foreign policy. This regulatory scrutiny
has become so intense that some of Project
Libra’s prospective backers are beginning to get nervous,
especially those that already have payments businesses such
as Visa, MasterCard, Stripe, and PayPal. PayPal, in fact, did not
attend a meeting here in DC to discuss the communication
strategy behind Project Libra. And we’ve been told by
people close to the company that it is thinking of
pulling out altogether. As I speak, we are days
away from finding out what the final list of Project
Libra’s backers will be. At that point we will know
whether PayPal has joined or not, whether
others have joined or not, and whether the momentum
behind the entire scheme has begun to stall.

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  1. Libra can be very dangerous for the goverment. I see already a movement where people turn to Libra instead the dollar – imagine that!

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