Facebook’s Libra project suffered yet another public setback on Friday, as four of the Libra Association’s founding members announced their exit from the project, CNBC reports. The four early project backers – Visa, eBay, Stripe, and Mastercard – all indicated that they continue to support efforts like Libra but have decided to focus their attention on their own business goals.
Earlier reports have indicated that there were 28 business organizations in the new Libra Association, including Facebook. PayPal became the first of those early backers to abandon the project when the company announced its exit from the association last week.
The exits come on the heels of recent reports that some Libra Association members were having reservations about signing on to a formal charter some time this month. Those reports had suggested that the members were hesitant to make that commitment during a period in which the project continues to face intense scrutiny and resistance from lawmakers and regulators.
According to CNBC, two other early backers, Uber and Lyft, claim that they have no plans to alter their involvement with Libra.
In a statement announcing the news, Visa indicated that it will continue to assess the project, and any future potential involvement with Libra will be dependent upon how well the Association can satisfy regulators’ concerns. The company also reaffirmed its belief in the potential benefits of blockchain technology:
“Visa’s continued interest in Libra stems from our belief that well-regulated blockchain-based networks could extend the value of secure digital payments to a greater number of people and places, particularly in emerging and developing markets.”
Meanwhile, the Libra Association’s inaugural meeting is scheduled for October 14. The Association plans to announce its initial membership at that time. The following week, Facebook CEO Mark Zuckerberg is expected to testify about the Libra digital currency project before the House Financial Services Committee.
Facebook’s Libra and what you need to know about it
Facebook’s Libra created a huge commotion since its announcement in mid-2019. The project was revealed as one of the most ambitious crypto projects ever. Moreover, the project’s parent company did not have a flawless reputation and was involved in the Cambridge Analytica data scandal. This caused huge concern and uproar in both the crypto sector and the global financial industry. Now, the crypto is expected to start trading in a few months.
What is the goal of Facebook’s Libra?
Facebook seeks to connect every person with a mobile phone to the global financial infrastructure. These people are considered by Facebook as the ‘unbanked,’ people who own a mobile phone but do not have access to a bank.
With Libra, Facebook seeks to empower these people with the ability of money transfer across the globe at a very low cost.
Facebook’s Libra would have a very secure blockchain network with a system that includes 100 computer servers. This would make the system very resistant to attacks, as any attack would need to breach at least one-third of its 100 servers.
Moreover, through an algorithm that is programmed o work as a “command-line program,’ the system would make interactive usage possible. As per Libra Association’s claim, each of its members would have their own server that would be secured by them independently.
The system would work with a consensus protocol that would require the approval of at least two-thirds of the servers before a transaction can go ahead. As per the claim, Libra is capable os supporting a thousand transactions per second, making it 500 times more efficient than Bitcoin.
The Fake Libra Airdrop Platform is Making the Rounds Once Again
Facebook’s Libra digital currency is not going anywhere any time soon. Even though most people are aware of this, the UpLibra scam is trying to make the rounds once again.
No one can obtain Facebook’s Libra at this time.
THERE IS NO LIBRA CURRENCY
Given the current regulatory pressure, it seems unlikely that anyone will, for the foreseeable future.
It would also appear that the overall interest in this project has waned significantly.
Despite the unavailability of this token, several scam sites have popped up.
They all claim to give users early access to Libra despite this currency not even existing.
UpLibra is a great example of such a shady website.
It aims to position itself as an OTC trading system for Faebook’s digital currency, even though no supply exists.
Most people won’t fall for these tricks, but free money often attracts a lot of interest.
Users will need to sign up for the platform to gain access to this alleged airdrop.
It appears that this is a way to harvest user details for who knows what.
This information can be sold to advertisers or sued in phishing attempts, to name a few possible outcomes.
It is best to stay away from any Libra-related site now, and even in the future.
Fed Chair Jay Powell: ‘Libra Lit a Fire,’ All Eyes on Central Bank Digital Currencies
Chairman Jay Powell is crediting Facebook’s proposed currency Libra for prompting the Federal Reserve to take a closer look at digital assets.
Speaking before the U.S. House Financial Services Committee, Powell confirms that central banks around the world are exploring the possibility of creating digital versions of fiat currencies.
“Every major central bank is currently taking a deep look at that. We feel that’s our obligation, technology has now made that possible…
Having a single government currency at the heart of the financial system is something that has served us well. It’s a very, very basic thing. It really hasn’t been in question, and I think before we move away from that, we should really understand what we’re doing.”
Libra and Facebook came under fire from Powell and other policymakers last year, when they expressed concerned about the tech giant’s track record on data privacy and the financial impact of a stablecoin that has the power to reach a built-in user base of billions.
“Frankly, Libra really lit a fire and was a bit of a wake-up call that this is coming fast and could come in a way that is quite widespread and systematically important – fairly quickly, if you use one of these big tech networks like Libra did.”
Powell reiterates that the organization is merely examining the possibility of creating a digital asset and nothing is set in stone.
“We fully appreciate the importance of making quick progress – we have not decided to do this, though. There are many questions that need to be answered around digital currency for the United States, including cyber issues, privacy issues. Many operational alternatives present themselves, so we’re going to be working through all of that.”
As for Bitcoin and the crypto markets, Powell says he believes the US should continue to develop a robust regulatory system for the emerging assets.