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Banks and Financial Institutions Will Join Libra, says MD

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Facebook’s Libra took a big hit quite recently after all its major backers like PayPal, Visa, Stripe, Master Card and eBay have all decided to back off from the Libra association citing regulatory constraint. 

There have been reports that authorities are asking these companies to consider the management of the various risks involved as Facebook had not been seen taking any of these threats too seriously. These companies could face severe regulatory consequences if they continue their involvement with Facebook’s cryptocurrency project some reports suggest.

Despite all the backlashes Libra is facing, the organization is still looking determined to launch the stable coin. The management is confident that more members will be joining the Libra Association. In a recent CNBC interview Tuesday, Bertrand Perez, chief operating officer and interim managing director of the Libra Association said that various companies that include “banking and financial institutions” have expressed their interest in joining the Libra project.

“There’s only one Visa, one Mastercard, I will not tell you that we have the equivalent, but I will tell you that we have reputable companies that are also very active in the financial and banking space,” Perez said.

He mentioned that the association would be making various announcements related to these events in the coming months. He added that the launch date which was the first half of next year, could be moved as the organization has to address various regulatory concerns. He said:

“With such a big project and the vision that we’re having, launching a few quarters later or before makes no real change.”

As of now, no bank is a part of the Libra Association, the committee stands with total of 21 members which was previously numbered at 28 but many high-profile companies – Visa, Mastercard, PayPal, Stripe, eBay, Booking Holdings and online marketplace MercadoLibre , have all dumped the project.

However, Perez is still confident that the association will have 100 members with it by the time Libra launches. When asked how Libra plans to address the various regulatory scrutiny they’ve been facing, Perez said:

“We are aware that we need to answer a lot of questions coming from the regulators and to make them comfortable with the platform and that requires time.”

The 21 current members of the Libra Association had previously met on Monday, October 14th in Geneva, which hosted the first Libra council meeting to elect a board of directors and sign a charter regarding their digital currency. The five-person board includes David Marcus, head of Calibra at Facebook, along with executives from Andreessen Horowitz, fintech start-up PayU, non-profit Kiva Microfunds and blockchain firm Xapo Holdings.

The meeting also saw three executive staff members being appointed to the Geneva-based Libra Association, including Perez who will act as interim managing director as well as a chief operating officer while the group searches for a permanent chief executive.

Anna Larsen
Anna Larsen has been a Crypto enthusiast since 2016. Fascinated by the technology and its usecases she decided to pursue a career in content creation related to this space. The journey has been exciting ever since.

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