Despite the exit of prominent payment processors, Libra Association launched by Facebook, Inc. (NASDAQ:FB) conducted its first meeting on Monday in Geneva. It has the support of 21 members that include Venture Capital Firms, Vodafone, Spotify, Lyft, and Uber.
Facebook moves ahead with creating Libra
Shrugging off the criticism from US politicians and regulators and defections of several high profile companies, Facebook moved forward to develop digital currency – Libra. The new digital currency enables cross border payments with ease. The 21 members in Libra Association have created a 5-member director board that includes an executive of Facebook – David Marcus, and representatives from PayU, Xapo, Kiva, and Andreessen Horowitz.
1,500 organizations show interest
The 21 member association is putting in efforts to rebuild the association. According to a communiqué from Libra Association, 1,500 organizations showed interest in becoming members. However, only 180 organizations meet the eligibility criteria set by the Libra Association. The minimum eligibility criteria to join Libra Association include financial deposits, the market value of the company, and the annual budget. According to Facebook, the members of Libra Association would grow to 100 by the time it launches Libra payments network in 2020. Each member company needs to contribute $10 million for Libra development.
After the announcement of Libra in June 2019, regulators are on the front foot to know who will govern the network and what role it plays in the finance worldwide. Several officials in the US are rushing to take credit for dissuading the members from leaving Libra Association. The senators: Sherrod Brown and Brian Schatz influenced the payment processors like Stripe, MasterCard, and Visa to quit the association.
Booking Holdings, an online travel company, is the latest to quit the cryptocurrency project. Other companies that left the private cryptocurrency project include Mercado Pago and eBay. According to information available with CNBC, Booking would not support Libra.
On October 23, 2019, Mark Zuckerberg, Chief Executive Officer of Facebook, would attend the House Financial Services Committee to answer the questions on new digital currency. Spotify said it is exploring opportunities expected from Libra Association to serve the global community. Head (policy and communications) of Libra Association, Dante Disparte, said he focuses on moving with the project.