What is Libra ?
Libra is a global currency and financial infrastructure developed by Facebook
Built on a secure, scalable, and reliable blockchain, it is a stable coin which is backed by a reserve of assets. It is governed by the independent Libra Association and uses the LibraBFT consensus mechanism. Facebook aims to have 100 members in its Libra Association before the launch, which in on first half of 2020.
The crack in the partnership
Ajay described the lack of a clear business model as a cause for major concern, stating that he could not see the future of their vision to become profitable. The association’s members were not ready to commit to anti-money laundering or data management controls wither. Mastercard jumped ship from the project in October, along with PayPal and Visa, just as the official charter to establish the Libra Association, a nonprofit body overseeing the project, was signed in Geneva.
The red light on Libra
Libra has faced intense scrutiny in recent months as EU competition regulators continue to probe them. US lawmakers grilled Facebook’s CEO Mark Zuckerberg last year on subjects such as Facebook’s handling of financial data, its cooperation with regulators, and why it wants to develop a substitute for the dollar. The association had started with 28 founding members in June 2019, but over the months eight firms have left. Telecom major Vodafone was the latest to withdraw when it decided to focus on its own payment products. Facebook is yet to comment officially on these withdrawals.