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All does not seem rosy with Facebook’s Stablecoin, Libra as JPMorgan and Goldman Sachs refused to be part of the initiative due to the fact perceived that the cryptocurrency inclines being used for illicit activities. This was captured in a recent report.
Facebook’s Libra has been undergoing heated debates, the most ever yet recorded in the crypto space. It has soared in popularity beyond every Stablecoin. With government entities, they consider the Libra cartel to be usurping to its monetary sovereignty. In the crypto space, crypto-enthusiasts have drawn various premises against it proposing its effect will be massive in the crypto sphere dwarfing every other cryptocurrency even Bitcoin.
What Is Next for Facebook Libra?
Now, this brings to mind the question of what will happen to Libra. Will it be able to meet up its target deadline of mid-year 2020? Not only Goldman Sachs and JP Morgan Chase have withdrawn support, payment systems like PayPal, but Visa and MasterCard card are also already in this league. Not only have they declined support for the Stablecoin, but they seemed to also frown at the Libra cartel.
This prompts up another school of thought that Facebook may shift its launch date of June 2020 for Libra due to all these refusals and also pressures due to regulatory concerns.
Recall SEC and other regulatory bodies in the US came out to issue a collaborative statement for every crypto user reminding them of their obligations towards money laundering, terrorist financing and also suspicious activity reporting. The two top Wall Street banks have refused solidarity with the Stablecoin because of its perceived use for money laundering and that it may squash existing rules and protocols.
Facebook’s CEO, Zuckerberg seems to be drawing on his inner strength as he is to appear before Congress in a panel meeting come October 23 this year.