The series of bad news for Libra continues, now, apparently, backers of the project are second-guessing their involvement. Libra Head, David Marcus, formally with PayPal replied to the WSJ’s report saying, “tone of some of this reporting suggests angst.”
According to the report, Visa and Mastercard have declined to publicly support the project. Moreover, including them, PayPal and Stripe Inc. are also reconsidering their membership according to another report by Bloomberg. Their sources remained anonymous, but given the ‘regulatory scrutiny’ that Libra has faced since its announcement, it is not surprising as well.
Nevertheless, David was not satisfied with the reporting standards. He said that he has, “no knowledge of specific organizations plans to not step up.” He also added,
The part of this article suggesting we weren’t on top of, or didn’t share detailed information about how to secure Libra and protect the network against illegal activity is categorically untrue; (worth calling BS)
How Long will the Wait be?
Regulators have strongly opposed the plan fearing a shift of monetary power from the Feds. Even Marcus accepted that “it will be a long road.” Irrespective of the backers getting cold feet, the project release by 2020 seems highly doubtful. However, the firm is still optimistic about meeting its June 2020 timelines.
Both Facebook’s stock and Bitcoin [BTC] price surged after the initial announcement. FB inc. rose by about 25% from $164 to test a high above $205.
Bitcoin [BTC] also witnessed a strong bull market post the announcement. Three after the hype, the price of both assets have gone back to earlier levels. While FB inc. is trading at $175, BTC price is $8245.
Furthermore, Marcus also mentioned that the first official wave of announcements of the member council will be made in the next few weeks. Due to the global attention that Libra has raised among regulators, the backers might be reconsidering its associations which could possibly taint its public image affecting stock prices.
Last but not least, a number of privately funded cryptocurrency projects have launched in the market. However, with Libra, Facebooks’ past has been particularly attracting regulatory oversight.
Do you think that the backers will move to other blockchain projects? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com