Facebook, in its meet at Geneva, has announced its 21 founding members. The association further announced its board of directors.
Uber, Lyft & Spotify Among Founding Members
After the exit of top payments companies, Facebook has finally announced its team of founding members. Some of the members include Uber, Lyft, and Spotify. The team met in Geneva to sign the Libra Association charter which will govern Libra. Also, the board of directors will consist of David Marcus, Facebook’s leader for the project, and representatives from Andreessen Horowitz, PayU, Kiva Micro funds, and Xapo Holdings.
Spotify in a statement said,
“Though it is still in the early stages, we look forward to exploring the opportunity offered by the Libra Association to empower billions of people globally, especially in financially underserved markets,”
2/3rd Majority Needed To Bring An Amendment
Per the Council’s interim articles, each member has one vote and is expected to withdraw from the project if there is a conflict of interest. Also, if the council needs to adopt a new amendment, change a Libra policy or dissolve the association, it should be passed by two-third members of the council.
In case any of the remaining members of the Libra Council wants to exit, they have a provision for transferring their membership “under limited circumstances” Each member is expected to invest $10 million to fund the association and launch an incentive program for libra.
From the Co-Creator’s Desk
David Marcus, the co-creator of Libra said that it was motivating to see many representatives coming from different industries having a common mission.
Zuckerberg to Face Lawmakers Next Week
The previous week saw Visa, Mastercard, Stripe and Mercado Page exiting from the project. thus, leaving PayU as the only payments company on the council. The project hit another snag when BookingHoldings also exited the project.
Facebook CEO Mark Zuckerberg will face lawmakers next week to defend the project at a hearing in front of the House Financial Services Committee. Zuckerberg will be the sole witness at the hearing on the 23rd of October, which is titled, “An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors.”
In July, Chairwoman Waters and other Committee Democrats sent a letter to Facebook. In the letter, they requested an immediate moratorium on the implementation of Facebook’s proposed cryptocurrency, Libra, and digital wallet, Calibra.
G7 Hardens Stance on Libra
Meanwhile, the G7 economies have hardened their stance on Facebook’s Libra. They have further said that Libra should not proceed further till it gains regulatory clarity. The report by G7 group alleges that Libra is a risk to the global financial system.
Will the signing of the Libra Charter bring any good news for Libra? Let us know, what you think in the comments below!