Lead: Facebook has a chance to make strategic adjustments in a timely manner.
On October 15th, Libra official Twitter announced that the first 21 members formally signed the Libra Association charter, established the Libra Association Board of Directors, elected the board of directors and appointed members of the Libra Association executive team. The 21 members are listed below:
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The Libra Association confirmed that more than 1,500 entities have expressed interest in joining the Libra project and approximately 180 entities have reached the initial membership criteria shared by libra.org.
What can the board decide?
As a member of the Libra Association, members will continue to engage with key regulators around the world, begin building governance and strategic structures, establish a transparent membership standard and consistent application of admissions processes, and begin to welcome the first batch of new non-discriminatory approaches. member.
According to the Libra Association's provisional charter, the board of directors is the highest decision-making body of the association. Each board member has one vote, but any board member who has a significant direct or indirect economic conflict of interest with a particular matter will be excused from voting. Vote for more than two-thirds to change certain key decisions, including:
- Accept and terminate members;
- Adopt and revise important Libra policies (such as reserve management policies and new membership criteria);
- Appoint and remove board members;
- Dissolution or liquidation of the association;
- Amend the association's charter.
Any member of the board of directors may leave the association for any reason and in some cases may transfer the membership.
At the first Libra Council meeting in Geneva, the Libra Council also appointed a five-person board of directors whose first members included:
The Libra Board of Directors then voted and officially appointed the original staff of the Association: Chief Operating Officer and Interim Managing Director Bertrand Perez, Policy and Communications Director Dante Disparte, Business Development Director Kurt Hemecker.
The Board of Directors is responsible for the day-to-day management and supervision of the individual committee of the executive, and the nominees of the board must also serve as representatives of the individual council of the association.
Each board member has one vote. Any member of the board of directors who has a material direct or indirect economic conflict of interest with a certain matter will be disqualified. All decisions of the board of directors must be approved by a majority. Disputes between members and associations will be resolved in accordance with Swiss arbitration.
There is no Facebook on the list?
How big is Facebook's rights in this project? This issue has also been an important point in its regulatory challenge. Some Twitter users have questioned. On the list, see Facebook only through the name of “Calibra, Inc.” in the list. Should Libra Association directly contact Facebook?
Indeed, Markus, the head of the Facebook blockchain project and the father of Libra, is on the published list, and the position is expressed in Calibra, not Facebook. The move may also be Facebook's intention to talk to the Libra project, reducing public awareness of its centralization.
After the first members of the Libra Association came out, Bloomberg also published an article questioning that the five board members of the Libra Association have one thing in common: close relationship with Facebook and its executives. Among them, David Marcus is a board member and an investor in Xapo Inc., and Xapo CEO Wences Casares is also a member of the Libra board of directors.
Bloomberg Opinion author Aaron Brown said, “The Silicon Valley board of directors almost always has this connection. Even people who have no formal relationship with Facebook will have informal and indirect relationships. Therefore, no one who is eligible to become a board member may be completely Independent of Facebook."
But Aaron Brown doesn't think the board is essentially an independent inspection agency for Facebook, and he prefers to see it as a group of qualified and interested people.
a "attack" under supervision
The first Libra Association was particularly encouraging in the face of heavy regulatory pressures and the withdrawal of members of the association.
Just the day before the Libra Association's first council, Booking Holdings Inc., an online travel company that operates sites such as Kayak.com and Priceline.com, announced that it would withdraw from the Libra Association. This is the seventh member to withdraw from the Libra Association. Earlier, after PayPal's “first retreat”, the payment giants Mastercard, Visa, Stripe, Mercado Pago and e-commerce giant eBay also announced their withdrawal from the Libra Association on October 11. The withdrawal of these giants is also due to pressure from US regulators.
On the same day, a report on the digital currency of the Group of Seven (G7) was also reported by major media. The report talks about the entire digital currency, including Libra, rather than focusing on a Libra project, but Facebook has just experienced a “backup” in which the “cryptocurrency such as Libra poses a risk to the global financial system”. The statement was also reported by major media.
G7 said in the report that even if Libra's supporters solve the problem, the project may not be approved by the regulator. No Stabilizationcoin program should be operational until the legal, regulatory, and supervisory challenges and risks are adequately addressed.
It is reported that the G7 Task Force writing this report is from senior officials of the Central Bank of China, the International Monetary Fund and the Financial Stability Board, and will be presented to the Ministers of Finance at the International Monetary Fund Annual Meeting this week.
In this regard, Dante Disparte, director of policy and communications at the Libra Association, also agreed with Twitter on Twitter.
Facebook seems to have really ushered in the "dark moment." InfoQ also mentioned in previous articles that the biggest problem Facebook is facing now is regulation, and countries are more or less resistant to the Llibra project, especially in the EU countries. Regulatory issues are the biggest resistance Facebook is currently facing.
From the perspective of the membership responsibilities given by the association, communication with national regulatory authorities is the top priority of the association's work. At the same time, Libra's internal work is slowly advancing. This meeting undoubtedly made the outside world regain some confidence in Libra.
In the future, how should Facebook go?
Facebook has a lot of troubles. CNBC host Ran Neuner said that Facebook should have more cooperation with the encryption community that has been fighting for 10 years in the encryption field.
Bloomberg also said today that Facebook Libra's opportunity is in countries where many people do not have bank accounts or other financial services, and it is not acceptable for the government to establish unregulated banks in developed countries. Instead of advocating as much as Telegram, Facebook should start from the ground up and consider small projects tailored to the needs of a particular country. In this way, regulators in each market may be more likely to convince people that the project is not malicious.
Cai Kailong, a senior researcher at the Institute of Financial Technology of Renmin University of China, also gave three major measures that Libra should consider when it comes out of the dilemma:
Facebook and Libra are decoupled to minimize Facebook’s central position. Regulatory is more likely to accept a Libra that is decoupled from Facebook;
- Steady and steady, first achieve short-term goals;
- Rapid expansion of technology Internet companies, especially blockchain companies.
- Facebook is not a "one way to the black", as long as the strategic adjustments are made in time. But all this still depends on Facebook's choice.
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Author | Joyce