After Facebook has received criticism from many sides with the planned market launch of its cryptocurrency Libra and some partners bailed out last year due to concerns, the Libra Association, which is working on the crypto project, was able to find new partners.
• Libra loses well-known partners with MasterCard and Visa
• New white paper with changes to address regulatory concerns
• Payment service provider Checkout.com joins the project
Facebook has been planning to launch its own digital currency, Libra, for some time . However, the project had to deal with setbacks several times in the past. Decision-makers were critical of the social media group's plans and data protection experts expressed concerns - too many important questions remained unanswered.
Visa and MasterCard jump off
In autumn of last year, Facebook's project partners also began to express doubts due to regulatory concerns. And so it happened that Libra gradually bailed out various partners in October 2019 . These include the US giants in terms of payment transactions, Visa and MasterCard , as well as the online payment service Stripe and the Internet trading platform eBay . PayPal had previously withdrawn.
Libra Association revises plans
The Swiss-based company, the Libra Association, has changed its plans for its own digital currency. In the new white paper, fintech explains four important changes that have been made to address regulatory concerns:
1. Offering multiple stablecoins tied to different government currencies in addition to the Libra token for multiple currencies.
2. Improving the security of the Libra payment system through a solid compliance framework.
3. The waiver of the future transition to a license-free blockchain system while maintaining its most important economic properties.
4. The installation of strong protective measures in the design of the Libra reserve.
Checkout.com and other new partners
Facebook is delighted: After a few partners left in the past year, the company has now found new supporters - including payment service provider Checkout.com. The group was "excited" to welcome Checkout.com as a member.