According to an article published in the Wall Street Journal, some of the financial participants (such as Visa and Mastercard) in the Libra cryptocurrency consortium would be reconsidering their participation in it. The cause would be the focus that regulatory authorities in the U.S. and Europe are putting on the project led by Facebook.
Although the giant Menlo Park assured that the cryptocurrency would use the same verification methods used by banks and credit cards, the authorities seriously doubt Facebook’s ability to address the issues of privacy and safeguarding of personal data, given its poor record in the matter. These doubts and the scrutiny that the authorities have put on the project, caused some of the sponsors of Libra decline to support the cryptocurrency publicly. This support lacking curtails the use of Libra as a payment means would be greatly curtailed; or even directly imply the end of the project.
So This is The End for Libra Cryptocurrency?
It may not seem at first. David Marcus, the project leader on Facebook, responded to the WSJ article in a series of tweets. While denying that the issue of possible illegal use of Libra has not been addressed, the tone of the tweets seems to point to the commitment that the entities should have to the project. A commitment that certainly does not ensure. Marcus’ words also hide a key point: time. “It will be a long road,” he says. It seems that the June 2020 goal is moving.
Personally, I think there is a negotiation game going on here. There is a lot at stake with parties that have important interests. Let’s not think only of the states and the sovereign issue of currency. Here banks and financial institutions may have to review certain business models if Libra delivers what it promises. We will see in the long run if Libra can finally make it through or if it remains in words of good intentions.