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Despite a hostile climate, the association Libra was born this Monday, October 14. Its goal is to manage the future digital currency wanted by Facebook which brings together nearly two and a half billion users on the planet.
Facebook's Libra project is in shock despite the brutal defection of seven financial giants: PayPal, Visa, MasterCard, eBay or Booking. " These departures do not question at all the viability of the project, " wanted to reassure Bertrand Perez, president of the association, former executive of PayPal.
An alternative payment method
The social network founded by the American Mark Zuckerberg , which brings together nearly two and a half billion users on the planet, creates the Libra Association to launch its cryptocurrency, an alternative payment method to traditional banking channels.
The new independent organization held its first official meeting on Monday in Geneva, Switzerland, where it is based. It now counts among its twenty-one members of other major players: the PayU online payment site, the Vodafone and Iliad telecommunications groups and the Uber, Spotify and Farfetch platforms.
Also on board are big names in blockchain technology like Anchorage, Xapo or Coinbase, venture capital funds such as Andreessen Horowitz, Ribbit Capital or non-profit organizations like Kiva or Mercy Corps.
" Each member of the association operates a node of the network, that is to say a server that contributes to the exploitation of the blockchain, " reads the online site Libra.org . " We have a total guarantee of their involvement from this day, so that we are confident enough for the project, " reassured Bertrand Perez, secretary general of the association.
These twenty-one members have signed a commitment charter. They elected a council of five to ensure the governance of the association. This board consists of Kathryn Haun (Andreessen Horowitz), David Marcus (Calibra, the subsidiary of Facebook), Matthew Davie (Kiva Microfunds), Patrick Ellis (PayU) and Wences Casares (Xapo).
The libra in circulation in 2020?
The launch of the libra currency was initially planned for mid-2020, but it could start later, the time for the association to find new members. She wants one hundred to reassure the regulators if she succeeds.
" We want to make sure we get the necessary permissions. In such a project, we are not within a few quarters , "insisted Bertrand Perez.
Unlike the majority of virtual currencies that are extremely volatile, the Libra is " a payment system, not a speculative currency ," says the president of the Association. He recalled that digital currency would be supported by a reserve of real and stable assets, such as the dollar or the euro.
Facebook in the crosshairs
But Facebook is far from inspiring confidence in privacy and the protection of personal data. His reputation was strongly shaken by the Cambridge Analytica scandal. Governments in Europe and the United States also fear that this new digital currency will encourage corruption and embezzlement.
Jerome Powell, chairman of the Fed, the US central bank, has already raised concerns about " privacy, money laundering, consumer protection and financial stability ." The Federal Reserve has asked a working group to monitor the Libra project in coordination with other central banks.
In France, the Minister of the Economy, Bruno Le Maire , refused to authorize the development of the future libra " on the European soil ", considering that " the monetary sovereignty of the States was at stake ".