Mark Zuckerberg, the CEO of Facebook, recently made some waves in a Congressional hearing. Specifically, Zuckerberg said that Facebook could abandon its Libra stablecoin completely – if this launches too quickly. This comes as Libra has been facing a growing crisis the last few weeks.
Could Facebook abandon Libra?
For those who need a reminder, the Libra stablecoin is Facebook’s foray into the cryptocurrency world. However, Facebook sought broad support before launching the initiative, and did this under an umbrella organization called the Libra Association.
As such, Facebook is not directly responsible for Libra’s development and implementation. Rather, this responsibility falls to the Libra Association. Although Facebook is a founding member of the Libra Association, and arguably the driving force behind the entire initiative, Libra is therefore not technically a Facebook project.
On October 23rd, Facebook’s CEO Mark Zuckerberg appeared before a Congressional hearing. During his testimony, Zuckerberg said that Facebook does not intend to launch Libra before the stablecoin project receives a green light from the proper US regulators.
However, lawmakers gave Zuckerberg som pushback on his comments, dealing with everything from Libra to Facebook’s handling of hate speech. Perhaps most notably, one representative – Bill Huizenga – asked about Facebook’s response if the Libra Association chooses to launch Libra without the pertinent American regulatory approval.
Zuckerberg has not lost faith in the Libra project
In answer to this, Zuckerberg revealed that Facebook’s commitment to Libra is not absolutely set in stone. Specifically, Zuckerberg answered “then I believe that we would be forced to leave the association.”
If Facebook did indeed leave the Libra Association, this would likely be seen by most as effectively killing the Libra project. The association has already lost most of its high-profile members, following last week’s mass exodus from the project.
Nevertheless, Zuckerberg highlighted that he still believes in the project. One representative – Juan Vargas – noted that although Facebook is an American company and subject to American regulations, the Libra Association is not.
Instead, the Libra Association is based in Switzerland – a country known to be more liberal regarding crypto regulation. Moreover, Vargas also explicitly referred to the growing crisis within Libra, with association members leaving the project.
As a reminder, some of the firms that have already dropped out are Visa, Mastercard, PayPal, Stripe, eBay and more. In response to this, Zuckerberg said that although some members have left the project, he is adamant that more will take an interest in the project and eventually join Libra.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.