Author: Kou Jianchao
On Friday, PayPal, an important partner of Facebook and a member of the Libra Association, announced that he had withdrawn from the Libra Association (Libra Association).PayPal's decision to withdraw from Libra is based on David, a Facebook executive and former PayPal president.
A spokesman for PayPal told CoinDesk, in a statement that the payment company
The statement states: We still support Libra's vision and look forward to continuing our dialogue on ways to cooperate in the future.Facebook has always been a long-term and valuable strategic partner of PayPal, and we will continue to work with and support Facebook in different capacities.
A spokesman for the Libra Association told CoinDesk: by emailAccording to the original plan, the Libra Association will meet on October 14 to formally sign the charter for the establishment of the Council.
A person close to PayPal said that PayPal was concerned that Facebook was not doing enough to deal with the controversy over the project, especially in eliminating money laundering concerns.
First, it is frequently ignored by the countries concerned.
Since Facebook launched the Libra program in June, the program has met with regulatory opposition, with policymakers in several countries saying the Facebook could destabilize the global monetary order.
House of Representatives Maxine, Democrat of California and Chairman of the House Financial Services Committee
I believe thatFacebook has 1/4 users in the world, and if there is a crisis, it will have a great impact on the stability of the United States and even the global financial system. In addition, in the absence of clear regulatory and protective measures, investors and consumers may be exposed to a variety of threats, including privacy, trading and cyber security. Given Facebook's past bad deeds, such as the notorious Cambridge analysis, the House of Representatives has questioned its commitment to protect user information security, and Libra could also become a money-laundering tool for lawbreakers.
In mid-July, David, head of Libra,andAnd so on.
Marcus, while seemingly candid in response to lawmakers' questions, has repeatedly shunned key questions and kept playing tai chi at the hearing, fearing that the hearing would still be difficult to allay concerns about the Facebook. Just like Sherrod, vice chairman of the Senate Banking Committee.
The House hearing was more intense, and some lawmakers even pointed directly at the LibraI am deeply concerned about Facebook's plan to create a digital currency and wallet,
The members of the house of Representatives questioned and questioned the Facebook's distrust and even hostility..
September 30, two U.S. lawmakers sent a letter to Federal Reserve Chairman Jerome. In the letter, Representative Frank
Jerome, chairman of the Federal Reserve
In this letter, two members of Parliament specifically mentioned the stable currency Libra that Facebook is planning to issue. They argue that if Libra is implemented, part of important financial governance will be outside the jurisdiction of U.S. law.
However, in addition to the United States, European governments and regulators, such as Switzerland, Germany and France, also have a lot of doubts about Libra.
On September 11, (FINMA), the Swiss financial markets regulator, issued an official guide to the stable currency, which states that Swiss regulation of the payment system follows existing international standards, in particular the principles of financial market infrastructure, including cyber risk management and anti-money laundering measures. Any additional services that may increase the risk of a payment system will be based on the Swiss Financial Markets Supervisory Authority
In addition, the Swiss Financial Market Regulatory Authority said that Libra's planned services clearly exceeded the purely payment system because of the issuance of Payment-based token, so it needed to meet additional requirements. These additional requirements will apply to the capital allocation proposed by Libra Research for credit, market and operational risks, risk concentration, liquidity and management. In particular, the document states that the necessary conditions for Libra to obtain a payment system licence are:Returns and risks associated with reserve management will be borne entirely by the Libra Association, rather than by the holders of stable currencies, as fund providers do.
Mark, Director of the Swiss Financial Markets Regulatory Authority. In an interview with the New Zurich Daily (Neue Zuercher Zeitung), (Mark Branson) said that at present, Libra still has a lot of controversy in the international arena.After discussions with Swiss regulators, she remained sceptical about the encrypted currency project.。
Bruno, French Minister of economy and FinanceBruno Le Maire made it clear that he was worried about Libra, believing that it might pose a threat to national sovereignty and even gradually replace the French national currency, so he would never accept Libra's release on the European continent. Previously, he had said that Libra would never be allowed to become a sovereign currency.
As another big European country, Germany also intends to ban Libra. Responsible for the development of block chain policy. Thomas, member of the Christian Democratic Union of Germany(Thomas Heilmann) said that if digital money providers dominated the market, it would be very difficult for the central bank to regain the initiative. The German government would ban the issuance of market-related privacy stabilized currencies in its national block chain strategy.
Previously,Bundesbank Governor Jens(Jens Weidmann) has said that if
On September 13, Germany and France issued a joint statement that they did not believe that Libra would prevent money laundering and terrorist financing and protect investors.Therefore, Germany and France firmly oppose the release of Libra in Europe.
In addition,Mark, President of the Bank of England(Mark Carney) had previously said,
Domenico, head of market and payment systems supervision at the Italian central bank(Domenico Gammaldi) also called on Facebook to provide more information about Libra, Gammadi even joked.
At a meeting of the European Central Bank system in early September, the ECB Executive Committee also said that the Libra appeared to be
Rendell, vice chairman of supervision of the Federal Reserve of the United States(Randal Quarles) in a speech on Thursday, he warned of the risk posed by the digital currency to the entire financial system. It means that
2. Technology companies are still cautious about the withdrawal of frequent members
It is not just PayPal, under government regulatory pressure, including early members of the Libra Association such as Visa, MasterCard, who are cautious about Libra.
Earlier, "Daily" reported that Visa, MasterCard and other major financial partners or re evaluation of whether to participate in Facebook's Libra encryption currency scheme, these agencies do not want to attract regulators to investigate, and refused to Facebook support for the plan.
In an interview with the Financial Times, a partner pointed out:I think it is difficult to support Libra for partners who want to be seen as compliant.
Another supporter criticized the social media giant for its misconceived strategy, saying:Some regulatory conversations should have taken place before they were launched to understand how regulators would look at the issue so that there would not be too many worries.
Third, Libra is in a dilemma and her future is uncertain.
Dipat added:Every organization that embarks on this journey must make its own assessment of the potential risks and rewards that Libra promises to bring about change in the world.We look forward to the first meeting of the Libra Council within 10 days and will share the latest developments after the meeting, including details of the 1500 entities that have expressed enthusiasm for participation.
On Friday, Dante, head of policy and communication at the Libra Association,It is not easy to build a global payment network without borders, such as the Libra project.
According to a report from The Information, the technology news media on Friday, Sheryl, chief operating officer of Facebook,Unless Libra agrees to attend another hearing in January 2020, the hearing will not be finalized.
The Libra is already in a dilemma, and it is conceivable that the Libra's huge vision has seriously challenged the monetary systems of governments.
In addition, private enterprises, including Apple, are also very cautious about this. Tim, chief executive of Apple this weeknegativeThe answer.
I have no doubt that money must be in the hands of the state. I don't quite agree with the idea of private groups creating a competitive currency. There is no need for private companies to seek power in this way.