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The proposed cryptocurrency Libra Coin, which was presented by Facebook and multiple big name corporations in late 2018, has endured a tough couple of months. The last couple of weeks alone has seen many of those major names officially pull the plug on their support for the project.

So why has this new cryptocurrency caused a stir like no other before it? And why have so many of the big hitters of the Libra Association pulled out?

Libra Suffers Backlash from Government Regulators

Libra Coin – if ever approved – would be a break from traditional cryptocurrency. It would not be a coin for investors to speculate with as their latest cryptocurrency investment. Instead the idea is for Libra Coin to form a so-called “stablecoin”, backed by huge reserves held in the globe’s biggest currency denominations. .

A “digital currency” would grant access 2 billion individuals who have no access to a bank account to a system that could pay for items both online and at offline locations. Upon the news of its release, Cryptolico CEO Jeremy Parkes said that – due to its stability profile – he would happily hold client funds in Libra coin should the project ever get the green light from regulators.

However, that looks like a long way off at this moment in time. Many countries’ central banks were critical of the idea of a new worldwide currency, citing the possibility that it could facilitate money laundering on a global scale. They summoned officials from the Libra Association to a high-profile meeting in Basel to get more answers back in September. .

Politicians across the globe also upped the pressure on other backers such as MasterCard and Visa. Senators Brian Schatz (D-Hawaii) and Sherrod Brown (D-Ohio) penned a letter, warning the CEOs of Mastercard, Visa and Stripe that they may come under increased regulatory scrutiny should they continue participating in Libra. Shortly afterwards the pressure told. Major backers including: PayPal, eBay, Mercado Pago, Visa, MasterCard and Stripe all quit the crypto project. However, despite these huge blows the Libra Association vows to carry on fighting for its cause.

What’s Next for Libra Coin?

The Libra Association held its first ever council meeting on October 14th in Geneva. Upon conclusion of its inaugural meeting, the Association confirmed that, “the plan is now to have up to 100 supporting members.” The COO Bertrand Perez commented, “There’s only one Visa, one MasterCard. I will not tell you that we have the equivalent, but I will tell you that we have reputable companies that are also very active in the financial and banking space.” So it looks like the project will continue unfazed, despite suffering the loss of major backers. Or has it?

EBay and other major backers such as Visa have remained coy on whether they are likely to rejoin the project at a later date, once regulatory approval has been secured. A spokesman from Visa confirmed as much when they stated, “We will continue to evaluate and our ultimate decision will be determined by a number of factors, including the Association’s ability to fully satisfy all requisite regulatory expectations.” What’s more, some major politicians are slowly coming round the idea of a global cryptocurrency’s ability to help those left behind by conventional banking. Therefore it looks like although the launch may be late, it’s still very much on the cards.

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