Regulatory barriers, executives acknowledge that Libra may postpone the release

Bertrand Perez, managing director and chief operating officer of the Libra Association, told Reuters that Libra may postpone its release due to regulatory concerns around the world.

Three months ago, Facebook (FB.O) announced plans to launch the cryptocurrency in June 2020 and formed a Libra association to manage the project with partners including other US technology giants.

However, attempts to mainstream cryptocurrencies have encountered regulatory and political suspicions on a global scale, and France and Germany have consistently stated that Libra will be prevented from doing business in Europe.

Bertrand Perez said the association is continuing discussions with regulators in Europe and elsewhere to alleviate concerns.

  • In an interview at the United Nations Office at Geneva, Perez talked about Libra's scheduled release date in June 2020. He said: "When we announced the project in June, that was our goal. But postponed one or two. The quarter is also acceptable. It is important that we comply with the regulations of the regulatory body, we need to ensure that they are on the same boat as us and fully accept our solutions. We need to ensure that they work with us and that our solutions are complete. Satisfied. We know that we have to answer many questions from regulators on both sides of the Atlantic and the rest of the world."

With Facebook's expansion into e-commerce, Libra will be supported by real-world asset reserves, including bank deposits and short-term government securities, and will be managed by the Libra Association, which now has 28 members.

This structure is designed to increase trust and stability, and price fluctuations are plaguing cryptocurrencies, making them unusable for business and payments.

Last week, David Marcus, the Facebook executive, said in an interview that the company still plans to launch the digital currency in 2020.

  • “Our goal is still to launch Libra next year. Until then, we need to solve all the problems and create a suitable regulatory environment.”

To date, the Libra Association has lagged behind Facebook in the popularity of the project, but Perez emphasizes that the association is independent of Facebook, which will have the same voting rights as other members in the association's decision-making.

Other members of the Libra Association include Vodafone, PayPal, Mastercard and Visa.

Prior to joining Libra in May of this year, Perez was a senior director of PayPal Payment Engineering. He added: "It is well known that this project was incubated on Facebook and launched on Facebook, but at an early stage the project has decided that this should be a public product, not a single entity."

Perez finally stressed: "The Libra Association is clearly an association, not a subsidiary of Facebook."

This article from Reuters, the original author: Brenna Hughes Neghaiwi

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