Facebook's cryptocurrency dilemma is deepening as more and more partners choose to withdraw before Libra's spaceship begins. US Senators are urging these Libra partners to do so because a letter to the CEO of the relevant company has been leaked online. Some people say that the government has stifled innovation, while others believe that this encryption project can only bring danger.
The fear caused by Facebook reached the highest point in history
Facebook is its biggest enemy. When billionaire Zuckerberg announced plans to launch his own centralized monetary system, it is unclear whether he would imagine how much damage his company would suffer. As we all know, Libra is sinking rapidly, especially last week, Facebook has suffered a lot.
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It seems that many US senators have privately contacted members of the Libra Association, urging them to abandon the project like a hot potato. The letters shared by VanEck's digital asset strategist Gabor Gurbacs on the Internet highlight the extent to which US politicians are working to stop Libra from launching.
“This is a letter received by Stripe, MasterCard and Visa (former Libra member, just announced to quit). In order to avoid regulatory pressure, many executives of these companies may choose not to try and innovate! Sad! America can do better !"
His position is clearly on the side of innovation, but he does not admit that Facebook can hardly assume the role of freedom of information and decentralized fortress.
Senator Brian Schatz and Sherrod Brown letter to Stripe CEO Patrick Collison. The latter slammed Facebook numerous times earlier this year and pointed out:
"The Facebook scandal continues to prove that it doesn't deserve our trust. Like other companies, it should be seen as a company that seeks profit."
So it's no surprise that they are now sending private letters to corporate CEOs to put pressure on them. The letter continues to point out that the social media giant is working to resolve major issues such as privacy violations, false information, election interference, discrimination and fraud.
All of this can't really be controversial.
It continues to point out that Facebook is trying to act as a financial arbitrator without being supervised.
Facebook seeks to achieve this by shifting the risk and designing the requirements of a new compliance system to the regulated members of the Libra Association, such as your company.
The letter even threatened that if they were involved in the Libra project, they might be subject to a high-level review of all payment activities from regulators, not just Libra.
The seriousness of the letter cannot be denied, but in subsequent comments, David Weisberger pointed out a lot of anti-Facebook sentiment. If Libra chooses to create or use US dollar-based stable coins for US customers, create or use Euro-based stable currencies for Europeans, and not attempt to establish a private exchange rate mechanism, their resistance will be much smaller. Better yet, they should accept/promote bitcoin…
So far, PayPal, eBay, Visa, Mastercard and Stripe have left the Libra Association, and other members are highly likely to follow.