Ongoing Talks with Regulators Could Delay Libra’s LaunchEconomy
Facebook might delay the launch of its digital currency, Libra, to address regulatory concerns voiced by several countries, especially France and Germany who pledged to block the currency from operating in Europe.
The social network giant has previously unveiled plans to launch Libra in June 2020 and said that the currency will be backed by a reserve of real-world assets, including bank deposits and short-term government securities, and overseen by the 28-member association.
Bertrand Perez, managing director of the Geneva-based Libra Association, told Reuters that discussions were continuing with regulators from Europe and elsewhere to assuage concerns.
“When we (made) the announcement in June, that was our North Star,” Perez said of the June 2020 launch date, adding that a delay of one or two quarters would not be an issue.
“What is important is that we need to comply with the regulators, and we need to make sure that they are on board with us and fully comfortable with our solutions.”
“We knew that we would have to answer lots of questions coming from regulators on both sides of the Atlantic, and from other parts of the world,” he added in an interview at the United Nations offices in Geneva.
David Marcus the executive leading the project at Facebook, has said earlier that the company is still working on launching the digital currency in 2020.
“The goal is still to launch Libra next year,” he told Swiss newspaper NZZ.
“Until then, we’ll need to address all questions adequately, create a suitable regulatory environment.”
The association has thus far taken a backseat to Facebook in visibility on the project, Reuters reported. But Perez stressed it was independent of the social media giant, which will have an equal vote as other members in the association’s decision-making.