Libra, Facebook‘s latest project led by David Marcus, is a cryptocurrency built on a permissioned blockchain backed by a basket of assets such as bank deposits and government debts; its ultimate objective is to create global financial inclusion.
Since its creation and announcement, project Libra has raised concerns from politicians from all over the world. India immediately considered banning it, similar to the European Union’s initial stance. Senators from the United States expressed their concerns and set-up a congressional hearing for Facebook in regards to this project to clarify their plans further. Countries like China, expressed a different kind of concern as Libra will be backed by currencies that do not include the Yuan which could negatively impact the Chinese economy and hence considered running a rival project.
After months of silence, the Swiss president, Ueli Maurer, stated in an interview: “I don’t think (Libra has a chance in its current form), because central banks will not accept the basket of currencies underpinning it”, he then added: “The project, in this form, has thus failed”.
David Marcus had previously stated in the past that regulations may be a major obstacle to overcome, which is why they announced the project much earlier than its June 2020 release date. Considering the severity of these hurdles and the global close attention given to this project, this date is likely to be postponed.
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