More Defections from the Libra Cryptocurrency Project

October 14, 2019 | Digital Assets, Investments, News

Major defections could doom Facebook’s global stablecoin

The Libra cryptocurrency project has lost another major partner on Monday over regulatory scrutiny around the stablecoin.

Today, Booking Holdings – the company behind Priceline, Kayak, and – dropped out of the Libra Association.

This is the latest in a string of high-profile departures. The Facebook-backed Libra cryptocurrency project recently lost Mastercard, Visa, Paypal, eBay-backed fintech startup Stripe, and many others.

Firms are pulling out due to warnings from politicians and government regulators. Even the G7 has drafted a report citing the concerns of central banks. The report said: “The G7 believe that no stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed.”

Libra Cryptocurrency Project Faces New Pressures

Earlier this month, Federal Reserve Chairman Jerome Powell expressed concerns about the Libra cryptocurrency project. Those concerns echoed in the G7 report drafted by members of the International Monetary Fund. Concerns about money laundering and other financial crimes rattled politicians, who quickly drafted letters to executives at financial institutions like Visa and Mastercard.

In addition, U.S. senators raised concerns about other social issues like sexual abuse in Facebook’s Messenger app. The social media company continues to face criticism for other issues around privacy, disinformation, and interference in elections.

Coinbase Strikes Back on Stablecoin

As we have discussed on multiple occasions, China will likely soon announce the creation of its own stablecoin. The nation has accelerated the development of China Coin in reaction to the development of Libra. Meanwhile, U.S. regulators have effectively stalled the Libra cryptocurrency project. Coinbase CEO Brian Armstrong has criticized U.S. officials and their stance around Libra. He recently questioned whether these regulators will reconsider their views given China’s pending stablecoin.

“Now that China is looking into creating a stablecoin, I wonder if the U.S. will reconsider its ridiculous response to Libra, Armstrong recently tweeted. “There are many cryptocurrencies, and Libra is just one of them. But the way the U.S. government reacted, it’s like they almost want to be left behind.”

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.

Alt Insights

January 29, 2020

Venture Capital: The Kobe in “Bryant Stibel & Co”

Venture Capital: The Kobe in “Bryant Stibel & Co”

Latest Alternative Investment News
Fintech: M&A In the Fintech Space Will Heat Up
April 3, 2020     FinTech, News

One of the clear winners, if there is such a thing of the current economic situation, will be fintech companies. And we can expect to see a wave of fintech…
REITS: Industrial Properties Look Promising On These Trends
April 3, 2020     News, Real Estate

Like most Real Estate Investment Trusts, the prices of industrial REITs have declined sharply in the coronavirus driven selloff in the equity markets. While there may be real concerns for…

Private Equity: Is Dave and Busters a PIPE Dream?
April 3, 2020     News, Private Equity

Dave and Busters (NASDAQ:PLAY) have been hard hit by the economic downturn. The restaurant and arcade company closed its stores across the United States. It furloughed at least 15,000 hourly…
Real Estate: Blackstone Group Pulls Out of Oakland Deal for Upton Station Building
April 3, 2020     News, Real Estate

Blackstone Group (NYSE: BX) is pulling out of a deal to buy an office property in Oakland, California, for $400 million. Blackstone had planned to use funds from its non-traded…

Scroll to Top