Facebook announced in June this year its plans to launch a cryptocurrency dubbed Libra. However, the company has seen a prominent backlash of media and regulatory attention ever since, grilling the project across a variety of essential parameters. With this in mind, let’s explore at least five reasons for which Libra may not launch – something that has been seen as entirely positive within the cryptocurrency community.
It didn’t take long before Facebook’s future cryptocurrency project grabbed the regulatory attention. Unfortunately, a lot of it was rather negative.
Bruno Le Maire, Minister of Economy and Finance in France. Source: Flickr
The French Finance Minister and a German member of the European Parliament were among the first to react, calling for a discussion over Libra. Moreover, both countries agreed to block the project, outlining that “no private entity can claim monetary power, which is inherent to the sovereignty of nations.”
Months later, the situation around Libra seems to get even worse and it brings attention to the whole cryptocurrency market. G20 members were urged to articulate their stance, as Facebook’s project couldn’t respond to all regulatory challenges.
Losing Key Supporters
When initially announced, Libra had a total of 28 members behind it. Powerhouses such as MasterCard, Visa, Spotify, Uber, and more were among the backers of the project. Unfortunately for Facebook, the negative stance on behalf of regulators across the globe cast a shadow of doubt over the project’s future and it lost important backers.
PayPal was the first major name to back out and the course was set. Visa, MasterCard, and eBay followed shortly after. The payment processing company Stripe stepped back as well and the Latin American payment system Mercado Pago was next. Read More...