Other members of the Libra Association have abandoned the Facebook project: following PayPal, VISA and MasterCard, also eBay and Stripe have left.
So for now, in addition to Facebook, some of the big names remain Uber, Spotify, Vodafone, Iliad, Andreessen Horowitz and Farfetch, as well as the technical partners Coinbase and Xapo. In total, the founding members are no longer 28 but 20.
VanEck’s Director of Digital Assets Strategy, Gabor Gurbacs, suggested that they may have been forced to do so in some way.
He wrote on Twitter:
“Every company that is leaving #Libra is likely, in some ways, forced to do that. It’s unfortunate and I am sorry that capital markets aren’t free.
Now you have a first hand understanding why censorship-resistance is important!
Welcome to #Bitcoin!”
As a matter of fact, these companies recently received some letters from US senators who actually urged them to withdraw from the project. Rather than just a warning, it was perhaps a deliberate forcing, which apparently had the desired effect.
VanEck is a company in the traditional finance, born in 1955, but which lately has been very active in the crypto sector. For example, it is the main company to issue bitcoin ETFs, allowing all investors to enter this world with a totally regulated financial product.
Meanwhile, Financial Stability Board (FSB) Chairman Randal Quarles stated in a letter to G20 finance ministers, and central bank governors, that the G7 working group is preparing a report to assess the risks and benefits of stablecoins.
The letter reads:
“We need to be prepared for evolving risks to global financial stability, whether they relate to current downside risks to growth and uncertainties about Brexit, or to structural changes in the financial system, such as the growing role of non-bank financial intermediation […].
The introduction of “global stablecoins” could pose a host of challenges to the regulatory community, not least because they have the potential to become systemically important, including through the substitution of domestic currencies”.
The first meeting of the Libra Association will be held today in Geneva, during which the board will be appointed. This probably means that the remaining 20 founding members will attend the meeting and remain part of the project.