Since June 18, 2019, the crypto world has changed forever. After Facebook announced, in collaboration with a score of world-class companies, the future launch of its own virtual currency, Libra, which came to challenge fiat money worldwide. But after facing countless problems and delays: Is the Facebook Libra project still on track?
Libra in 2019: What happened?
The origin of Libra from Facebook
Only with great difficulty could a project like Libra on Facebook have been born in a country other than the United States. For, for most of the world, the fact that it is governments that issue the money, is a truth internalized by several generations. However, Mark Zuckerberg and his company were not satisfied with this reality, and decided to challenge it with a different approach than Bitcoin.
Thus, on June 18, 2019, the future launch of Libra was announced. A virtual currency based on Blockchain, but developed and supported by a score of companies gathered in the Libra Association. Who would be responsible for ensuring its development, operation and implementation at the global level.
The original plan of Bitcoin Billionaire and its allied companies was to launch a virtual currency backed by a basket of different currencies such as the US dollar and the euro. This would guarantee the value of Libra over time, avoiding the volatility that affects cryptosystems like Bitcoin.
In this way, Facebook hoped to provide an alternative to people around the world who are unbanked. And, therefore, they do not have access to all the benefits that being part of the global financial system provides. However, almost immediately after announcing the launch of Libra, the project began to face significant challenges.
State resistance to the Facebook project
For governments of the world like the United States, China or France, it is one thing to confront and tolerate Bitcoin. A cryptomoney in its early stages of development, and driven only by a community of committed but geographically dispersed citizens. So they represent, at best, a threat to the medium term.
But it’s another thing altogether to deal with the financial muscle of a company like Facebook. Which proposes in Libra an alternative to the monopoly exercised by governments on the world monetary system. And, therefore, on the monetary policy of each of their countries. Making this project a much more immediate challenge than the one represented by Bitcoin.
Therefore, as soon as Facebook announced the release of Libra in the near future, most governments in the world were strongly opposed to the projects of the social network. Whether it is by launching parliamentary investigations as in the case of the United States. Denying that they would allow the use of Libra as happened in France. Or even speeding up the launch of its own government virtual currency, as the Chinese government did.
Is the Libra project still on track after the departure of several major companies?
These attacks on the currency led to the departure of several of the most important companies of the Libra Association, including Mastercard and Paypal. Which preferred not to confront their governments over the Facebook project. Questioning the possibility that he could go on.