Yesterday, the telecommunications giant, Vodafone Group, joined the list of world giants that are slowly abandoning the Libra Association, the entity behind the Facebook stablecoin project, Libra.
According to reports, it seems that Vodafone decided to follow PayPal, Visa, MasterCard and eBay in leaving Mark Zuckerberg’s ambitious project concerning the new global digital currency, Libra.
In June, Facebook announced its plan for the launch of the stablecoin, which saw numerous clashes with regulators in the following months, starting with the US regulators.
Vodafone nevertheless wanted to leave an open door to the project and through a spokesman said:
“We will continue to monitor the development of the Libra Association and do not rule out the possibility of future co-operation”.
This is the same modus operandi also used by other companies, that of not wanting to exclude the possibility of being part of the project in the future and this due to the fact that, in spite of everything, Libra’s ambition had managed to convince the Crypto Valley par excellence, Switzerland.
The mistakes of Libra and Facebook
However, this seems to be changing today due to some not very strategic mistakes made by the social network giant.
In fact, according to reports, it seems that the Swiss warm welcome given to Libra in June 2019 is becoming dubious and insecure.
Examples of the errors reported include:
“Libra also made a strategic error in not reaching out to Swiss bank regulator Finma about applying for a banking license before announcing its Geneva plans. The Libra Association then decided to not include the safe-haven Swiss franc in the basket of currencies backing the cryptocurrency, creating further uncertainty”.
And that’s not all: at the end of last year, the President of the Swiss Confederation, Ueli Maurer, expressed his support for the failure of the Libra Facebook project.
In addition, according to Maurer, Libra would have difficulties entering the market. Specifically, he said:
“I don’t think so, as the basket of currencies being deposited in that currency will not be accepted by the national banks. As a result, the project has actually failed in that respect”.