While the battle rages, 28 brave souls stand watch.
The 28 founding members of the Libra association must be going through a real rollercoaster of emotions. It would have been an enormous opportunity to be at the forefront of a mass-adoptable cryptocurrency, birthed to over 2 billion people through Facebook. But then the regulators came.
It has been a sizeable battle between Facebook’s Libra cryptocurrency and the US Senate, a bevy of bankers, and governments alike. Many regulators and lawmakers feel that Facebook is not the right company to be doing this, and this must surely be affecting its 28 partners?
However, the blockchain contingent of the Libra association seems publicly proud still to be a part of this project, despite the heavy regulatory scrutiny.
A spokesperson for custody startup Anchorage wrote to CoinDesk:
“The team believes in the mission of Libra and is proud to be a Founding Member of the Libra Association. They are confident that the Association and its members will work through regulatory concerns and look forward to continued conversations with policymakers.”
Moreover, Andreessen Horowitz and Union Square Ventures confirmed that they remain committed to the project. The CEO Xapo, and blockchain infrastructure startup Bison Trails, also said they were still in with no intention of leaving.
Of course, it would be easy to start questioning the commitment of many of these companies who must have heard that Libra may never get off the ground if the regulatory issues are not solved.
The Association is supposed to rise to 100 members in the future, but it would be interesting to see if the lines are still just as long; especially when considering it is reported that members pay at least $10 million to join, which gets them a Libra investment token.
This token entitles them to a share of the interest generated by the massive pool of fiat currencies and low-risk assets that back the blockchain’s stablecoin.
There are, of course, some added benefits that are probably not as well codified. It was questioned, in an article on Forbes, that the Libra association may start to become akin to the PayPal Mafia – a group of former PayPal employees and founders who helped each other’s businesses thrive.
Anchorage and Visa have, since their joining of the Association, reported a partnership with the payments processor investing heavily into the blockchain custodial service. It may be that even if Libra takes a hot, is watered down, or is delayed in the launch; there are still other benefits to be had by being a part of this new journey.