Posted 3 years ago | by Bethany Armstrong
Facebook's cryptocurrency project, Libra, continues to growing scrutiny. As new concerns and objections are raised, Libra continues to indicate that they welcome the open and public dialogue.
PayPal Withdraws from Libra
Over the weekend, PayPal, one of the early Libra Association members, withdrew from the Libra Association. PayPal stated they may be interested in looking at other ways to work with the Libra Association.
This announcement was followed by hints of MasterCard and Visa potentially withdrawing as well. MasterCard and Visa have indicated concerns of regulated scrutiny.
EU Continues Criticism of Libra
The European Union has been very vocal with criticism of the Libra project. This week, the executive branch of the European Union sent a detailed questionnaire to the Libra Association. CNBC is reporting that the EU questionnaire "goes beyond" the antitrust concerns as indicated a few months ago and delves deeper into security concerns.
Specifically, the EU is raising questions about money laundering, data privacy risks and financial stability. The EU has also raised concerns about privacy issues for individuals who use Libra as Libra would have access to private and financial information.
Libra Members' Overlapping Relationships
One of the growing concerns of the Libra Association is the overlapping relationships between 15 of the 27 members. A Wired analysis indicates that with so many intertwined relationships, "The Libra Association creates “a façade of decentralization, so that no single company can be held responsible for the management of the Libra system." The Wired report continues by saying that overlap could increase the likelihood of collusion.
With so many concerns, it appears that Libra has a long road to go towards persuading adoption. Particularly, with focused adoption from world leaders and other businesses. Even with the scrutiny, Libra does not appear to be disinclined to delaying the 2020 release date.