Key partners exiting the Libra Association and becoming a new target for the G7 are the latest hurdles to Facebook’s quest to launch the Libra currency.
Just last week, U.S lawmakers, including Senators Sherrod Brown and Brian Schatz, wrote to Libra Association members, namely, Mastercard, Visa, eBay, and Stripe, to reconsider their earlier decision to join the yet-to-be-launched stablecoin project.
The basic idea was that these firms would come under greater regulatory scrutiny for merely going ahead with the Libra Association, a ‘threat’ that likely led up to the subsequent decision announced by the companies that they were exiting the Libra project.
Speaking to CNBC Squawk Box on the ongoing Libra member exodus, Morgan Creek Digital Assets founder, Anthony Pompliano, condemned the move made by the lawmakers, noting that the result would be that they kick out American companies out of the Association.
“If it's successful, then American companies won’t benefit,” Pompliano added.
Interestingly, when quizzed on what could be the way out for Facebook and the Libra project, Pompliano suggested that Facebook may be better off embracing other cryptocurrencies while also maintaining the Libra Association.
If Facebook was to say [....] we’re going to basically sidestep creating a currency, we’re going to launch this digital wallet and we’re going to embrace Bitcoin and the cryptocurrencies that exist, then that might change the narrative a little bit.
In another report regarding Libra's struggles, Stmarket.co reported that a banking startup, Current, sued Facebook for logo infringement. Current alleged that Facebook copied its logo for the planned Calibra wallet and have refused to change the log upon being contact in July when the project was unveiled.
Aside from the civil lawsuit, Jerome Powell, Chairman of the United States Federal Reserve Bank, had said in July that Facebook could not go ahead with its Libra currency until there is “broad satisfaction with the way the company has addressed money laundering.”