Libra cryptocurrency project suffered a significant setback on Friday as PayPal has announced its official exit. As reported earlier on, CoinGape, Visa, and MasterCard are also mulling their participation.
These companies are looking to disassociate themselves with Libra due to the prejudice against Facebook.
The project has received a lot of criticism from the US, UK, France, and Germany. Nevertheless, reportedly, the European Union will present a case for Libra and other stablecoins at the G20 meet during mid-October.
Apart from Libra, USD-Tether is also a popularly traded stablecoin in the crypto-markets. So much so, that the daily volume of Tether is comparable to that of Bitcoin, in some cases even higher. The EU will tell the other members of G20 to adopt a new global strategy and digital tax system to adapt to the growth of these specialized cryptocurrencies.
‘Stablecoins’ are backed by a FIAT currency or a ‘basket of currencies and other low-risk assets,’ (as is the case with Libra). This new blockchain-based FIAT currency poses a threat to the capital volume of the Federal Reserves of a country’s central bank. The EU urges that,
“Latest developments with regard to stablecoins and the multi-faceted regulatory, oversight and supervisory challenges these represent, call for seamless cooperation and concerted response at global level,”
‘Libra is a journey, not a destination’ – Libra Spokesperson
The regulators might be strictly opposed to Facebook’s plans. However, the Association is committed to its plans on creating financial independence.
The head of the Libra Association’s policy and communications dept., Dante Disparte is still highly optimistic, he told the media,
We look forward to the first Libra Council meeting in 10 days and will be sharing updates following that, including details of the 1,500 entities that have indicated enthusiastic interest to participate.
The meeting of the Libra Association is close to the G20 meeting on Oct 17-18th. The names in the list of 1500 interested parties and the existing structure of the Council will be instrumental to the progress and its public image.
Do you think that with a surge of interested companies, Libra Association will finally get a green signal? 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