A summary on Libra and why it might never happen

We have mentioned Libra a couple of times covering Libra Scamsthe possible ban of Facebook from the finance industry and Facebook being asked to put Libra on hold. These news give Facebook a hard time for finalizing and releasing their Libra cryptocurrency.

The project had a number of significant backers from the economic sector including VISA, Mastercard, PayPal and others back when Facebook revealed the concept for its Libra cryptocurrency. Now it seems as though they are backing out due to significant amounts of scrutiny by financial regulators around the globe.

These organizations are currently “reconsidering their involvement” in the cryptocurrency, according to the Wall Street Journal’s Tuesday report.

The companies do not want to attract unwanted attention from lawmakers and public officials in the U.S and Europe, which they most probably will if they continue to be part of the Libra Association. The 28 founding members are set to meet in Geneva in order to review a fresh charter on 14th of October, where they will figure out which role each one holds within the Libra Association.

These are signs that Libra, a worldwide cryptocurrency that was visualized for use both within its social network and by individuals without frequent access to banking facilities, could never happen. The Financial times reported similar news in August without mentioning involved partners.

According to a Libra association spokesperson, who pointed to the initial whitepaper which had the cryptocurrency scheme planned out, the organisation hopes to grow to 100 employees by the first quarter of 2020.

As many of you may recall, Libra went under fire from lawmakers around the globe as soon as it was announced. President Donald Trump followed up by saying that Libra would have “little standing or reliability.” Moreover, the democrats in the House of Representatives also asked Facebook to put their project on halt. Regulators in the EU, U.K and Canada were also concerned about privacy issues and Libra. India, which is a significant target for Libra, has been suggesting a total ban on the currency.

According to audio recordings leaked to The Verge, Facebook CEO Mark Zuckerberg mentions that he still expects Libra to roll out in some locations by the end of the year.

“The public things, I think, tend to be a little more dramatic,” Zuckerberg said. “But a bigger part of it is private engagement with regulators around the world, and those, I think, often are more substantive and less dramatic. And those meetings aren’t being played for the camera, but that’s where a lot of the discussions and details get hashed out on things. So this is going to be a long road. We kind of expected this — that this is what big engagement looks like.”

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