Libra’s Permissionless Blockchain Objective Pushed as They Face Regulatory Woes
- Facebook backed Libra have moved away from their fully permissionless concept due to regulatory woes with the financial watchdogs.
- Ran Goldi gave Libra a five to ten-year timeline to actually achieve their goal. They recently appointed a new CEO who they believed has the expertise and experience to help Libra launch legally.
Ran Goldi, the CEO of First Group, has now revealed that Libra might not be able to realize their Permissionless Blockchain ideology. At least not just yet. Adding that it might take another decade or half-decade to achieve this as he hosted the Consensus 2020 event earlier this week.
The CEO, who has been a major proponent of Libra, reiterated that the stablecoin could set the basis from which other Coins would be launched. The Permissionless concept would have to be put on hold due to the regulatory crunches posed. They had envisioned achieving this on a 5-year timeline but have been forced to abandon their plans until the financial watchdogs could realize that the DeFi sphere was actually capable of self-regulation.
Banking the Unbanked
When quizzed about what type of ecosystem could be developed around Libra, he was quick to cite that mostly remittance applications would benefit from Libra. This is as they venture into developing an application that would ‘bank the unbanked’.
He also conversed with Michael Shaulov CEO of FireBlocks on why they had no commitment to joining Libra despite their competitors Anchorage had already onboarded Libra. FireBlocks provides expertise in secure infrastructure (Storage and transfer) for financial institutions that are in cryptocurrencies and Blockchain. Servicing around 50 institutions facilitating over $7 billion in transactions.
Mr. Shaulov expressed his concern that they hadn’t exactly determined how joining Libra’s fold would be especially beneficial to FireBlocks.
“…we sort of realized that actually it's not clear that being part of the Association would really help us.”
New CEO to help with regulatory crunches
Notably, the Libra association revealed their newly appointed CEO during a May 6th announcement. Mr. Levey, the former Chief Legal Officer at HSBC, boasts of vast experience in both private and government sectors. He has served in the government as the Under Secretary of the Treasury for Terrorism and Financial Intelligence under both Obama and Bush regimes.
He has been touted as the one to steer Libra from the regulatory crunches and help them launch stablecoins legally according to a Libra board member.
“…bringing his extensive expertise to combine technology innovation with a robust compliance and regulatory framework”.