Facebook’s Libra Faces Challenges as Association’s Members Contemplate Leaving
Facebook Inc. announced the launch of Libra Association, a cryptocurrency targeting to bank the unbanked and provide a global payment solution for its users earlier in the year.
The Calibra wallet, that aims to facilitate the 28 members in the Association, however, has faced multiple pressures from regulatory authorities and the U.S government. This has led to a number of companies distancing themselves from the company.
While Calibra wallet, Libra’s (and possibly multiple crypto’s) wallet, remains an independent firm, Facebook holds massive influence over the success of the association. The social media giant’s influence over Calibra is raising regulators suspicions not only in the U.S but also in the EU and across the East.
On Aug 6 BEG reported the increasing worry Libra is facing from global financial regulators as the crypto association started receiving letters including Switzerland’s regulators. Is Facebook’s data privacy woes a concern for regulators?
A report on FT on Aug 23 confirmed a number of companies in the Association are looking to take a step back from the project as regulatory pressures persist. One of the founders in the association said,
“I think it's going to be difficult for partners who want to be seen as in compliance [with their own regulators] to be out there supporting [Libra]”
Facebook’s CEO Mark Zuckerberg’s $292 million USD sale
Facebook’s founder keeps selling. In the past few years’ Mark Zuckerberg has released quite an amount of his Facebook shares and after a quiet opening of 2019, August has been no different.
In this month alone, the Facebook CEO sold 1.6 million Facebook (FB) shares amounting to $292 million USD.
The sale is, however, remaining within his accounts as he regularly sells parts of his Facebook fortune to fund the Chan Zuckerberg Initiative, a philanthropic initiative started together with his wife, Priscilla Chan.