Facebook launches Libra digital currency amid criticisms

October 15, 2019 8:58 am20 commentsViews: 45

Despite criticisms from politicians and regulators Facebook launched Monday its new digital currency named Libra that will be governed by the nonprofit Libra Association, which originally had 27 potential members but gradually several companies including PayPal, Mastercard and Visa withdrew from it lately.

Facebook launches Libra digital currency amid criticisms

However, some larger companies like Spotify, Lyft, Vodafone and Uber are members of the Libra Association.

According to a statement released by the association, about 180 entities have shown interest in the new digital currency and they have met the initial requirements of becoming members too.

The criticism from politicians and regulators came this summer when Facebook unveiled its plan of creating a separate and private currency system that would facilitate users making cross-border payments easily.

Critics believe users’ privacy would spill over into the new digital currency even though it is being a separate organization.

Later this month Facebook CEO Mark Zuckerberg will appear in front of the House Financial Services Committee chaired by Rep. Maxine Waters, D-Calif. to discuss the new private currency.

Both Facebook and Libra Association confirmed would not either start trading or accepting deposits for the currency until the concerns of US regulators are satisfied.

The currency’s head of policy and communications, Dante Disparte, said they are trying to get approval of the US regulators.

Meanwhile, several Washington lobbyists have been hired by the social giant to help alieve concerns of politicians and regulators over the new age currency.

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