Facebook's Libra currency in its current form is a failed project

Facebook's Libra project has failed in its current form and needs approval from central banks, the president of Switzerland said as the cryptocurrency seeks regulatory approval. “I don’t think (Libra has a chance in its current form), because central banks will not accept the basket of currencies on which it is based,” Uli Mauri, Switzerland’s finance minister and outgoing president, told Swiss Radio Broadcasting (SRF). He added in the press interview: “The project in this way failed.”

Plans for a Facebook-led digital currency, to be issued and governed by the Libra Association in Geneva, have raised concerns among regulators and politicians ranging from privacy to its ability to influence monetary policy and change the global financial landscape. Officials running the project, including David Marcus, who is in charge of the company's blockchain division, said that regulatory hurdles could lead to the launch being postponed beyond the scheduled date of June 2020. The cryptocurrency is backed by a reserve of assets such as bank deposits and government debt held by a network of custodians.

This structure aims to foster trust and avoid the price fluctuations that plague other cryptocurrencies such as Bitcoin. But since the unveiling of this project, the company has faced a war from regulators in the United States as well as the European Union. At first, comments from central banks were conservative, but later their positions hardened, making sure that the project aimed to control Facebook’s money over people’s money after controlling their data.

PayPal, Visa, MasterCard, eBay, and many companies with great influence in the project withdrew from the project, while the company failed to persuade other companies to join to complete 100 members in the Libra Association, where each company joins with funding of $10 million. #Facebook #FacebookClibra