Facebook appears to be unfazed by the unrelenting criticism and pressure that is piling on to its crypto domination aspirations. As the US Treasury Secretary waded in with more threats, another Libra Association partner bailed out, and the consortium concluded its first official meeting.
Any New Takers For Libra?
The Libra Association had its first general meeting yesterday in Geneva. The assembly involved establishing the basic governance of the Libra Association which now numbers just 21.
According to reports, five new board members were named including project lead David Marcus, Andreessen Horowitz’s blockchain boss Katie Haun, Xapo CEO Wences Casares, Matthew Davie from Kiva Microfunds, and PayU’s Patrick Ellis.
The Dutch firm PayU is the only payment processor left in the consortium as all of the US giants have fled under threat of heavy regulatory action. So far the number of defectors total seven; PayPal, Visa, Mastercard, Stripe, eBay, Kayak owner Booking Holdings, and South American payments provider Mercado Pago.
The association asserts that Libra will be a separate entity but it is clear that Facebook and its billionaire ruler will still be the puppet master. It is this premise that has waved the red flag to the regulatory bull as the onslaught continues.
Just yesterday, US Treasury Secretary Steve Mnuchin told CNBC if those associated with the cryptocurrency did not meet its stringent anti-money laundering standards they would be subject to enforcement action. He added that those that had eagerly partnered the project have realized that they’re not up to par.
Central Bank Boss to Control Centralized Cryptocurrency
Facebook needs someone with the experience of running a central bank to manage its centralized cryptocurrency if it ever gets off the launch pad. According to reports, project lead David Marcus has already said as much. The irony was not lost on Messari Crypto founder Ryan Selkis.
How did I just see this re Libra?
"Marcus previously told The Information that the association would seek a managing director with the experience of running a central bank *such as a former Federal Reserve chair.*"
— Ryan Selkis (@twobitidiot) October 15, 2019
According to the official press release, new partners are practically breaking down the digital door to replace the heavyweights that have just jumped out of the burning building.
The Libra Association confirmed that over 1,500 entities have indicated interest in joining the Libra project effort, and approximately 180 entities have met the preliminary membership criteria
Meeting Facebook’s criteria clearly aren’t the same as meeting regulatory criteria being set out around the globe. These guidelines have clear intentions of preventing a social media monopoly controlling the financial transactions of as many as two billion people.
These new partners, if they ever materialize, are likely to be non-US based minnows as all of the big fish are now swimming down the river away from these turbulent waters.
Will Facebook ever launch Libra? Add your comments below.
Images via Bitcoinist Media Library, Libra, Twitter: @twobitidiot