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Libra blamed by hawkish regulators
Libra set a goal of launching in early 2020, but disapproval from regulators and hawkish rhetoric from central banks have shaken confidence in the project. One by one, the founding members of the LIbra Association began to leave, starting with the retreat of PayPal. In the week before a final decision is made, it is common to hear intentions to leave the association until the rumors become true.
The following day, a handful of payment processors decided not to participate either, with VISA, MasterCard, Stripe and eBay all offering different payment system methods in response to their own regulatory restrictions. Libra, on the other hand, is still in the testnet phase and is seen as too risky at this point.
The father of smart contracts, Bitcoin pioneer, and veteran cryptographer Nick Szabo highlighted the fact that BTC is still ahead of other payment methods. He said that bitcoin could actually work better as a medium of exchange than some payment software that has been banned.
Nick Carter commented on this, adding that Libras setbacks are reminiscent of earlier projects that wanted to create alternative currencies, although they had some support from the corporate structure.
The cryptocurrency industry forgot the lessons of gold reserves and liberty reserves and decided to create new private funds with CEOs and corporate entities, but they dug too deep.
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the road ahead is difficult
Participating in Libra as a project core or node will cost $10 million, and Facebook claims that there are multiple entities willing to pay the price and participate in the ecosystem. But at this point, the example of leading payment service providers is giving off worrying signs.
David Marcus, head of Calibra, believes that losing supporters is bad news in the short term, but it will not determine the fate of Libra. He even thanked VISA and MasterCard for sticking to the project during the difficult hearing.
Libra is certainly not a dead software as it is running on a testnet and developers have been invited to test the technology. But the network isnt enough, as it needs regulatory approval and other structures to exchange fiat currencies and safely hold them while Libra coins are issued.
The original text comes from bitcoinist, compiled by the BluemountainLabs team, the English copyright belongs to the original author, please contact the editor for Chinese reprint.
The original text comes from bitcoinist, compiled by the BluemountainLabs team, the English copyright belongs to the original author, please contact the editor for Chinese reprint.
