Facebook has selected a five-member board on Monday, pledging to forge ahead despite losing 7 of its members, online travel company Booking Holding quitting earlier in the day.
“It is a correction; it's not a setback,” said Dante Disparte, head of policy and communications for the Libra Association, whose remaining 21 members held their inaugural meeting in Geneva.
21 initial members of the Libra Association formally signed onto the Libra Association charter and formalized the #LibraAssoc Council today – a tremendous step toward global #financialinclusion. Read the press release here: https://t.co/OapwKGw039
— Libra (@Libra_) October 14, 2019
The exodus followed the US lawmakers threatening the companies and CEOs to pull out of the social media giant’s cryptocurrency project or face enhanced regulatory scrutiny.
As such, Facebook is left without the backing of major payment firms for the project, which has been scheduled for launch by June 2020.
At the meeting in Geneva, members agreed on how the organization will be governed, as required by Swiss law. Most of the decisions will require a majority vote of the governing council while changes to membership would require a two-thirds majority.
Five people have been elected to serve on the board including Libra co-creator David Marcus, representatives from only remaining payments firm Netherlands-based PayU, Katie Haun from venture firm Andreessen Horowitz, Wences Casares from blockchain company Xapo Holdings Limited, and Matthew Davie from non-profit Kiva Microfunds.
As per the fact sheet, “Any member may leave the Association for any reason.”
It further shares that more than 1,500 entities originally indicated interest in joining Libra and 180 entities met the preliminary membership criteria.
The Association, despite losing support is still eager to pursue its mission of lowering costs for billions of people, broadening access to essential financial services, and building a better payment network. It will also continue to work with regulators around the world.
But the departure of major financial firms means the social media giant can no longer count on a global player to facilitate transactions. Moreover, this presents yet another stumbling block for Libra’s efforts to convince regulators about the safety of its stablecoin.