Highlights:
- The Libra Foundation has finally open up shop by holding a general inaugural meeting
- A total of 5 board member have been elected from among the initial backers
- Signs of optimism after the recent departure of five firms from the proposal in fear of regulatory push back
Signs of Optimism
According to a report from Reuters on Oct. 14, the consortium reaffirmed their interest in creating a payments-oriented stablecoin that would be balanced by a basked of various, purportedly stable fiat currencies. The Libra Association is apparently remaining optimistic about going ahead with the project.
When the Libra Association debuted in June, Facebook touted a roster of 28 major firms. However, Visa, Mastercard, PayPal, Booking Holdings, eBay, Stripe and Mercado Pago, announced their withdrawals from Libra over the past week, with some citing concerns over the regulatory backlash faced by the project.
The five-member board comprises of Facebook’s David Marcus, representatives from non-profit Kiva Microfunds, PayU, venture capital firm Andreessen Horowitz and Xapo Holdings Limited. The members also laid out a number of bylaws describing the process for electing new board members, voting on proposals, and adjudicating disputes.
The Pushback doesn’t Stop
“The G7 believe that no stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed”
The G7 summit held on Sunday had a chance to discuss payments projects such as that of the Libra Stable Coin. Apparently, the report outlined nine major threats posed by Libra, and also other stablecoins in general. They zoomed in on the suspicion that digital stablecoins could seriously destabilize the global financial order if not nipped in the bud in time.
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