Payments Processor Checkout.com Joins Facebook-led Stablecoin Project Libra Association
British payments processor Checkout.com has become an official partner of the Libra Association, which works on developing Facebook’s Libra digital currency.
This comes after Mastercard, Visa and Stripe have decided back in October to no longer support Libra. In the last few weeks, the crypto broker Tagomi together with the e-commerce behemoth Shopify and non-profit Heifer International have also said they will back the Facebook project. Introduced in June 2019, Libra had many policymakers worrying about how it will present a money laundering risk and have a negative effect on the global financial system.
Blockchain Payment Processing Should Be Regulated
The co-founder and CEO of Checkout.com, Guillaume Pousaz, said blockchain payment processing methods should be regulated, and that Libra Association members agree with him. Here are his exact words on this:
“Absent of such regulation, it is our fundamental belief that the technological advancements alone would fail to provide the secure and stable payments infrastructure required to drive mass adoption, impeding its progress.”
A competitor to Stripe and the Dutch company Adyen, Checkout.com was valued last year at $2 billion in a first funding round that raised $230 million. When it comes to its newly formed partnership with Libra, the Libra Association’s head of policy and communication, Dante Disparte, said in a statement that:
“The organization joins a dynamic and growing group of Libra Association members committed to achieving a safe, transparent, and consumer-friendly implementation of a global payment system that breaks down financial barriers for billions of people.”
Libra Association Has Big Plans
Recently, the Libra Association revealed that it wants to take apart the digital currency it plans to launch, proposing the launch of a few stablecoins that would be pegged to currencies from around the world while being a multi-currency, single Libra token. It seems the group based in Switzerland has already applied for a license from the Finma local regulator. The Libra Association mentioned it wanted to settle for a rather centralized structure governed by its 24 members instead of running a blockchain system that would allow anyone to join its network, like it did until now.
In the beginning, Libra had 28 members, but many of these members withdrew, such as the previously mentioned Mastercard, Visa, Stripe and Vodafone, the latter saying it wants to focus on M-Pesa, its own digital payments system. Libra is not going to be the same as Bitcoin (BTC) because it won’t have a network as easy to access and maintain with just about any type of hardware connected to the internet.