Facebook announced the launch of Libra, a digital currency that will be backed by them. They further gave out the list of firms that were backing up the project, and this list included Visa, Mastercard, PayPal, Uber, Coinbase, Spotify, Xapo, and many others. Such industry giants backing up a digital currency shocked the crypto community, and people were shocked.
The involvement of such business giants in the project was of no help to the cryptocurrency as it is continuously facing backlash from the government. The Berlin Government has recently passed a blockchain strategy that would aim to stem a company or entity that is working towards establishing a “parallel currency.”
This strategy was approved by Chancellor Angela Merkel’s cabinet for the German government to stick with them with the decision of preventing stablecoins from becoming alternative currencies. German politicians are also planning to talk to the central bank of Germany, Bundesbank to discuss the possibility of a ‘digital central bank money’ hinting that they might launch their cryptocurrency to stop Libra’s growth.
This decision was made after the Minister of Finance in France, Bruno La Maire suggested to stop the launch of Libra as it will cause risk to the monetary policies of the country. The head of Calibra at Facebook and part of the Libra project, David Marcus explained how fiat currencies would back Libra, and there is no threat at the sovereignty of central banks.
Still not ready
On the other hand, PayPal, one of the partners in the project, is not convinced by Libra and they are not sure about its future in the across the globe and whether it’ll change the future. PayPal isn’t the only firm that is having doubts on the future of cryptocurrency in the world, three other members of Libra Association have considered leaving the association as it might put a strain on the partner firms in future.