Facebook’s brand new cryptocurrency, Libra, which is managed by the Libra Association and backed by a wide variety of financial assets is facing a lot of regulatory issues. The developers, however, aren’t too concerned about it, in fact they stated that they knew it was going to be like that.
The team already announced in July that Libra will not launch until it meets all the regulatory concerns. The Libra Association consists of big names like Visa or Paypal and hopes to grow even more. In fact people related to the Libra projected stated that many companies are eager to join the association. Facebook charges $10 million to members when they join.
The biggest regulatory concern right now is whether Libra is money or an investment. Facebook hired a lobbying firm already to deal with all the regulatory pushback. Even Trump commented on Facebook’s new project saying that if they want to become a bank, they are subject to all banking regulations like every other bank.
The project hasn’t only faced regulatory criticism, cryptocurrency users are also not convinced about it, the biggest concern is the idea that Libra might not even be a cryptocurrency at all.
Libra is still really new and anything can still happen, the U.S. is certainly really strict when it comes to cryptocurrencies. If Libra can pass all regulations, it would be a huge victory for the whole cryptocurrency market.